The impact of the HIV/AIDS epidemic on the economy has been a concern since the beginning of the pandemic.

 

HIV/AIDSepidemic is responsible for slowing the rate of growth of the gross national product of many heavily affected countries and that in some cases, GNP growth could decrease by more than 1 percentage point for every 10 percent HIV prevalence.

 

The HIV/AIDS epidemic can affect the economy in a number of ways:

 

• The AIDS epidemic will slow or reverse the growth in the labour supply.

 

• Savings and investments of families will be reduced owing to the increase inHIV/AIDS-related health expenditures.

 

• The AIDS epidemic may also divert public spending from investments in physical and human capital to health expenditures, leading over time to the slower growth of the gross domestic product.

 

• The HIV/AIDS epidemic may also deepen the poverty of the most affected countries by decreasing the growth rate of per capita income and by selectively impoverishing the individuals and families that are directly affected.

 

• 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.