Iron deficiency hurts economy in developing countries: Study

Anemic adults and children cost developing countries billions of dollars in lost productivity, says a recent study.

"One in three of the world's population suffers from anemia so this has tremendous economic consequences," says Sue Horton, a University of Toronto economics professor and lead author of the study, The Economics of Iron Deficiency. The economic loss due to iron deficiency in South Asia, alone, is staggering: close to $4.2 billion (US) is lost annually in Bangladesh, India, Sri Lanka and Pakistan. Adults who lack sufficient iron in their diets are more lethargic which leads to lower productivity, while the motor and cognitive development of small children is also impaired.

Horton and co-author Jay Ross, an epidemiologist from the non-profit organization Academy for Educational Development, calculated the economic impact of iron deficiencies in 10 developing countries in South Asia, Central America, Africa and the Middle East. They found that, on average, a country loses 0.6 per cent of its gross domestic product (GDP) due to physical productivity losses from adults lacking iron. When learning and motor impairments in anemic children are added, the figure rises dramatically to four per cent of its GDP. "A loss of four per cent of GDP even in poor countries translates into billions of dollars lost," says Horton.

Horton says iron fortification is extremely important and inexpensive. For example, it costs only 12 cents (US) per person per year to fortify wheat flour in Venezuela. The payback is tremendous for a country's economy. "With every dollar you invest, you receive $36 back in physical and cognitive productivity. Those are huge returns."


Contact: Sue Toye
University of Toronto

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