The US GDP could grow by an extra 1% if 60 million Americans took GLP-1 drugs by 2028

The economy could grow, a Goldman Sachs analyst stated in a note last month.

US GDP could increase by an additional 1% if 60 million Americans take GLP-1 drugs by 2028, wrote Jan Hatzius, Goldman Sachs' chief economist.

Hatzius noted that health-related issues prevent people from participating in the labor force and hinder economic growth. Obesity raises the risk of serious health problems, including heart attacks, strokes, and diabetes.

"Combining current losses in hours worked and labor force participation from sickness and disability, early deaths, and informal caregiving, we estimate that GDP could potentially be over 10% higher if poor health outcomes did not limit labor supply in the US," Hatzius said.

Thus, drugs that have shown promise in improving a range of patient health outcomes could significantly impact the broader economy.

"The main reason we see meaningful upside from healthcare innovation is that poor health imposes significant economic costs. There are several channels through which poor health weighs on economic activity that could diminish if health outcomes improve," Hatzius explained.

GLP-1 drugs from Novo Nordisk and Eli Lilly and Company are sold under the brand names Ozempic and Mounjaro to treat type 2 diabetes, and Wegovy and Zepbound to treat obesity.

Sales of these drugs have soared, with some users experiencing drastic weight loss of up to 20%. A study released in August found that patients who took Wegovy for weight loss reduced their risk of heart attacks, strokes, and cardiovascular death by 20%.

With the US obesity rate hovering around 40%, tens of millions of Americans could be prescribed GLP-1 drugs in the coming years, though the exact number will depend on the results of clinical trials and whether health insurers will cover them.