Game-Changing Predictions by Goldman Sachs
Goldman Sachs economists are predicting a potential 1% surge in the Gross Domestic Product (GDP) of the United States in the near future. They credit this impending economic uptick to the widespread adoption of weight-loss drugs.
Race for Market Dominance
In a market set to potentially grow to $100 billion by the end of the decade, companies are fiercely competing to develop and market GLP-1 agonists. Leading this charge are Novo Nordisk A/S and Eli Lilly (LLY.N), the creators of Ozempic and Mounjaro, respectively, as reported by Reuters.
Projected User Increase and Economic Impact
With projections indicating a surge in GLP-1 usage to between 10 and 70 million consumers by 2028, the potential benefits are twofold: a decrease in obesity-related complications and a boost in workplace productivity, as outlined by Reuters.
Goldman Sachs estimates that scenarios with 30 to 60 million users could lead to a significant 0.4% to 1% increase in GDP, underlining the substantial economic implications of this trend.
Broader Economic Implications
Academic studies backing these forecasts stress the link between obesity rates, reduced employability, and productivity levels. Goldman Sachs points to the ongoing healthcare innovation wave, which includes AI-enabled drug discovery in tandem with GLP-1 drugs, as a key driver in potentially elevating U.S. GDP by 1.3%
In practical terms, this could mean a staggering $360 billion annually based on current exchange rates, with a potential growth range from 0.6% to 3.2%. Notably, the impact is expected to be more pronounced in the United States compared to other developed markets due to superior health outcomes in the latter.
The Transformative Potential of Weight Loss Drugs
In a November event, experts highlighted the transformative effects of a new class of weight loss drugs, discussing their impact on the U.S. healthcare system, including implications for addiction-related conditions. Reuters emphasized the groundbreaking potential of these drugs beyond just treating obesity.
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