Canada’s health care spending expected to grow faster than the economy
New data from the Canadian Institute for Health Information (CIHI) estimates that in 2024, health care spending in Canada is expected to increase by 5.7%, after rising 4.5% in 2023 and 1.7% in 2022. Health expenditure growth in 2024 is expected to outpace the growth of the economy.
Health care spending is expected to reach $372 billion ($9,054 per Canadian) in 2024 and account for 12.4% of Canada’s gross domestic product (GDP). Excluding the 2020 and 2021 pandemic period, this is the highest ratio ever reached.
“On the tail of the pandemic and alongside other factors including an aging population, Canada’s health expenditures appear to be shifting gears toward a higher pace of growth,” said Christopher Kuchciak, manager of Health Expenditures at CIHI. “In the post-pandemic period, health care systems will need to keep innovating as they continue to work to meet patient needs within the context of a slower economy.”
As in previous years, hospitals (on average, employee compensation accounts for about two-thirds of total hospital costs), drugs and physicians remain the major areas of spending. Combined, they are expected to represent over 50% of total health care spending in Canada in 2024.
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About CIHI
The Canadian Institute for Health Information (CIHI) is an independent, not-for-profit organization dedicated to providing essential health information to all Canadians.
CIHI works closely with federal, provincial and territorial partners and stakeholders throughout Canada to gather, package and disseminate information to inform policy, management, care and research, leading to better and more equitable health outcomes for all Canadians. Health information has become one of society’s most valuable public goods. For more than 30 years, CIHI has set the pace on data privacy, security, accessibility and innovation to improve Canada’s health systems.
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How to cite:
Canadian Institute for Health Information. Canada’s health care spending expected to grow faster than the economy. Accessed April 25, 2025.
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