Introduction

Through this project we intend to analyze the correlation between the health expenditure (SH.XPD.CHEX.GD.ZS) of the different countries throughout the world and the life expectancy (SP.DYN.LE00.IN) of the citizens of those countries, from 2015 onwards. All the data has been collected from the World Bank dataset. Our main hypothesis consists of considering that the more money spent in strengthening the health system, the better life expectancy the citizens of the country are going to enjoy.

At the same time, for this project to be data feasible, we have grouped the countries into different geographical regions which are the following ones: Europe & Central Asia, Middle East and North Africa, South Asia, East Asia and the Pacific, Latin America and the Caribbean, North America, and Sub-Saharan Africa.

For this purpose, we have considered relevant to expose data in different and variated ways for it to be visually accessible and easily interpreted. In this sense, we have created tables and graphic plots which represent the desired correlations.

The relevance of this project

It is undoubtful that health plays an important role in every society. Just to put ourselves in perspective, according to the Health Policy Watch, the world spent 10% of its PIB or which is the same 9.8 trillion of dollars in health during 2021 (Health Policy Watch, 2023). Nevertheless, according to the World Health Organization annual report, in 2023 there are still several difficulties in variated countries in relation with maternal and child mortality (227/100.000 maternal mortality and 76/1000 deaths concerning child mortality) specially in Africa, infectious diseases such as HIV (1.5 million infections in 2021), Tuberculosis (10.6 million infections) or Malaria (247 million cases in 2021) or even concerning problems regarding child malnutrition (22.3% of child under five suffering from malnutrition) (World Health Organization, 2023).

It is also important to highlight the presence of this topic within the SDG goals which have been designed as part of the 2030 worldwide strategy by the United Nations Conference on Sustainable Development during the conference hold in Rio de Janeiro in 2012. Concretely the health SDG corresponds to SDG 3 which is presented until the name “Good Health and Well-being” and which main objective consist of “Ensuring healthy lives and promote well-being for all at all ages” (United Nations, n.d.).

The first visual representation provides an overview of the average life expectancy and average health expenditure per capita for the different regions. On the one hand, average life expectancy represents the average life expectancy at birth for the countries within each region. Life expectancy is a key indicator of the overall health and well-being of a population. It indicates the average number of years a newborn can expect to live under current mortality rates.

On the other hand, average health expenditure per capita shows the average amount of money spent on healthcare per person in each region. Health expenditure per capita reflects the financial resources allocated to healthcare services and infrastructure within a region. It includes spending on healthcare facilities, personnel, medicines, and other related expenses.

Data Analysis

In the first visualization, we observe averages for both life expectancy and health expenditure per capita across various regions. Each region’s average values offer insights into the relationship between healthcare investment and life expectancy.

Starting with East Asia & Pacific, where the average life expectancy stands at 73.70 years, coupled with an average health expenditure per capita of $950.01. Moving on to Europe & Central Asia, this region showcases the highest average life expectancy among the listed regions, reaching 77.88 years. Remarkably, it also allocates a substantial amount of financial resources to healthcare, with an average health expenditure per capita of $2,350.70.

Transitioning to Latin America & Caribbean, we find an average life expectancy of 74.54 years, alongside an average health expenditure per capita of $639.42. Meanwhile, in Middle East & North Africa, the average life expectancy is 75.16 years, accompanied by an average health expenditure per capita of $978.53.

Lastly, we come to North America, where the average life expectancy is the highest among the listed regions, standing at 80.46 years. Notably, North America also demonstrates a significant investment in healthcare, with an average health expenditure per capita of $7,616.27.

These findings underscore the variation in life expectancy and healthcare spending patterns across regions, shedding light on the complex interplay between healthcare investment and public health outcomes.

region

Average Life Expectancy

Average Health Expenditure per Capita

East Asia & Pacific

73.70

950.01

Europe & Central Asia

77.88

2,350.70

Latin America & Caribbean

74.54

639.42

Middle East & North Africa

75.16

978.53

North America

80.46

7,616.27

South Asia

70.84

173.63

Sub-Saharan Africa

62.22

117.54

The scatterplots for 2015 and 2020 illustrate a robust positive correlation between health expenditure per capita and life expectancy across different world regions, with both axes presented on a logarithmic scale. Generally, there is a significant increase in life expectancy over these five years, which aligns with the observed increase in health expenditure per capita. In 2015, regions such as East Asia and Pacific and Sub-Saharan Africa displayed considerable variability in life expectancy for similar levels of health expenditure. However, by 2020, there is a noticeable upward shift in life expectancy for these regions, particularly in East Asia and Pacific, indicating substantial health improvements likely due to enhanced health policies and economic growth.

Europe and Central Asia consistently show high life expectancy coupled with high health expenditure in both years, with only a slight increase in life expectancy noted in 2020, reflecting well-established healthcare systems. Latin America and the Caribbean also demonstrate improved health outcomes over the five-year period, with increased health expenditures leading to better life expectancy. The Middle East and North Africa region maintains relatively high life expectancy with moderate increases in health expenditure by 2020, suggesting ongoing, but steady, enhancements in health services.

North America, primarily represented by the United States, continues to exhibit very high health expenditure alongside high life expectancy in both 2015 and 2020, with further increases in expenditure over the period. South Asia, which initially had lower health expenditure and life expectancy in 2015, shows significant improvements by 2020, reflecting better access to and quality of healthcare services. Despite some progress, Sub-Saharan Africa remains the region with the lowest health expenditure and life expectancy, highlighting ongoing challenges in healthcare infrastructure, access, and delivery.

These observations underscore the critical role of sustained and targeted health investments in enhancing life expectancy worldwide. The data reveal persistent regional disparities that necessitate tailored approaches to healthcare improvements. While regions like Europe and Central Asia, and North America maintain high standards, other regions, especially Sub-Saharan Africa, require significant attention and resources to overcome healthcare challenges. This analysis emphasizes the importance of continued and increased investments in health systems to achieve global health equity and improved life outcomes for all regions.

The following line graph depicts the correlation coefficients between life expectancy and health expenditure per capita for various regions from 2015 to 2020. These coefficients provide insights into how strongly the two variables are related in each region over time.

The correlation coefficient for East Asia & Pacific (red line) remains relatively stable over the period, hovering around 0.7. This indicates a consistently strong positive relationship between health expenditure and life expectancy, suggesting that increases in health spending reliably correspond to improvements in life expectancy.

For Europe & Central Asia (brown line), the correlation coefficient starts slightly above 0.75 and shows a gradual increase, reaching around 0.78 by 2020. This slight upward trend suggests that the relationship between health expenditure and life expectancy has strengthened over the period, reflecting potentially more effective use of health resources or improvements in healthcare systems.

The Latin America & Caribbean region (green line) shows a noticeable dip around 2017-2018 but then rises sharply, ending at around 0.7 in 2020. This fluctuation indicates some variability in the strength of the relationship between health expenditure and life expectancy, possibly due to economic or political factors impacting health investment and outcomes. The strong increase towards the end of the period suggests significant recent improvements in how health spending translates to life expectancy.

The Middle East & North Africa (turquoise line) starts at around 0.75 and maintains this level throughout the period, with a slight increase towards 2020. This stability reflects a consistently strong correlation between health expenditure and life expectancy, suggesting ongoing effectiveness in health spending.

South Asia (purple line) shows an increasing trend, starting from just above 0.5 and rising to about 0.6 by 2020. This improvement suggests that health expenditure is becoming more effective in enhancing life expectancy, reflecting improvements in healthcare infrastructure and access.

Sub-Saharan Africa (pink line) starts with the lowest correlation coefficient, around 0.5, and shows a gradual increase, peaking at approximately 0.6 in 2020. This upward trend indicates that while the region still faces significant challenges, the relationship between health expenditure and life expectancy is strengthening, likely due to improved healthcare investments and interventions.

Overall, the correlation coefficients for most regions show either stability or an upward trend, indicating that health expenditure per capita increasingly translates into improved life expectancy. Europe & Central Asia, and the Middle East & North Africa consistently show strong correlations, reflecting effective health spending. Latin America & Caribbean, and Sub-Saharan Africa, demonstrate significant improvements, indicating better utilization of health resources in recent years. East Asia & Pacific and South Asia also show positive trends, highlighting ongoing progress in healthcare effectiveness. These patterns underscore the importance of sustained and strategic investments in health to enhance life expectancy globally.

Conclusion

The analysis of the correlation between health expenditure per capita and life expectancy from 2015 to 2020 reveals significant insights into the relationship between financial investments in healthcare and public health outcomes across various regions.

Overall, there is a robust positive correlation between health expenditure and life expectancy, indicating that higher spending on healthcare generally leads to better health outcomes. However, the strength and stability of this relationship vary across regions, reflecting differing levels of healthcare efficiency, infrastructure, and socio-economic conditions.

East Asia & Pacific consistently shows a strong positive correlation, suggesting that health spending in this region is effectively translating into increased life expectancy. Europe & Central Asia also demonstrates a stable and strong relationship, with a slight increase over time, indicating well-established and effective healthcare systems.

Latin America & Caribbean exhibit more variability, with a notable dip around 2017-2018 followed by a sharp increase. This suggests fluctuations in health policy effectiveness or external factors impacting healthcare investments, but overall improvements in recent years. Middle East & North Africa maintains a strong and consistent correlation, reflecting ongoing effectiveness in health spending.

South Asia shows a positive trend, with the correlation strengthening over the period, indicating improvements in healthcare infrastructure and access. Sub-Saharan Africa, despite starting with the lowest correlation coefficient, shows a gradual increase, highlighting ongoing challenges but also progress in translating health expenditure into life expectancy gains.

North America, primarily represented by the United States, consistently shows high health expenditure alongside high life expectancy, underscoring significant investments in healthcare. However, the efficiency of these investments could be further explored to identify areas for improvement.

These findings underscore the critical importance of sustained and strategic investments in healthcare to enhance life expectancy. Regions with well-established healthcare systems continue to benefit from high investments, while other regions, particularly Sub-Saharan Africa, require increased attention and resources to overcome healthcare challenges. The positive trends observed in most regions highlight ongoing progress and the potential for further improvements with targeted health policies and investments.

In conclusion, the analysis emphasizes the need for continued global efforts to address healthcare disparities and ensure equitable access to quality healthcare services. By prioritizing health investments and optimizing healthcare systems, countries can achieve significant improvements in life expectancy and overall well-being for their populations.