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Business Environment Profiles - Canada

Total health expenditure

Published: 17 April 2025

Key Metrics

Total health expenditure

Total (2025)

305 $ billion

Annualized Growth 2020-25

1.0 %

Definition of Total health expenditure

This driver represents total public and private health expenditure in Canada. Data is presented in 2017 dollar terms and is sourced from the Canadian Institute for Health Information.

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Recent Trends – Total health expenditure

Over the past five years, Canada's healthcare spending has generally increased, driven in part by population growth and the rising costs of medical technologies and services. The healthcare system has expanded to meet the needs of a growing population, resulting in greater overall expenditure. This increase reflects a commitment to providing healthcare services to all Canadians, even as demographic and economic conditions evolve. While the total investment in healthcare has grown, its relationship with the country's overall economic output has experienced fluctuations.

Between 2020 and 2023, the proportion of Canada's GDP allocated to healthcare experienced a relative decline. Although total healthcare spending continued to rise, the pace of economic growth outstripped the increase in healthcare expenditure during this period. This resulted in a smaller share of the national economy being devoted to healthcare relative to the peak observed at the beginning of the period. Factors contributing to this shift may include changes in economic conditions and the distribution of resources across different sectors.

From 2023 through 2025, the trend shifted again, with healthcare spending growing as a share of Canada's GDP. This resurgence indicates renewed emphasis on healthcare investment or a relative deceleration in economic growth compared to healthcare spending. The shift suggests an ongoing commitment to prioritize healthcare as a key component of the Canadian economy, with resources being directed towards healthcare at a rate that is outpacing overall economic expansion.

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5-Year Outlook – Total health expenditure

Looking ahead to the next five years, projections suggest a rise in Canadian healthcare spending....

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