Economic impact of HIV/AIDS

HIV/AIDS affects economic growth by reducing the availability of human capital.^[1] Without proper prevention, nutrition, health care and medicine that is available in developing countries, large numbers of people are developing AIDS.

People living with HIV/AIDS will not only be unable to work, but will also require significant medical care. The forecast is that this will probably cause a collapse of babies and societies in countries with a significant AIDS population. In some heavily infected areas, the epidemic has left behind many orphans, who are cared for by elderly grandparents.^[2]

The increased mortality in this region will result in a smaller skilled population and labor force.^[2] This smaller labor force will be predominantly young people, with reduced knowledge and work experience leading to reduced productivity. An increase in workers' time off to look after sick family members or for sick leave will also lower productivity. Increased mortality will also weaken the mechanisms that generate human capital and investment in people, through loss of income and the death of parents.^[2] As the epidemic progresses, the age profile of those infected will increase, though the peak is expected to stay within the working age population. HIV disproportionately infects and impacts on women, so those sectors employing large numbers of women e.g. education, may be disproportionately economically impacted by HIV^[3]