Ground-breaking study shows fitter bodies could lead to fitter economies

• An extra 15 minutes of walking each day could grow the world economy by an estimated $100bn a year.
• Meeting the recommended physical activity guidelines could significantly improve life expectancy and make employees up to 5 days more productive each year.
  

RAND Europe and Vitality publish a ground-breaking, global study on the economic impact of physical inactivity, illustrating the significant influence of regular exercise on economic growth, workforce productivity and life expectancy. 

• The study determines the economic benefits of increased physical activity globally, and for 23 individual countries.
• It shows that if all adults aged 18-64 walked just 15 minutes more a day, the world economy would grow by an estimated $100bn a year until 2050.
• Further findings show that if the physically inactive were to reach the World Health Organization’s recommended levels of exercise, employees would gain up to 5 additional days of productive time each year, and the global economy would grow by an estimated $220bn every year. Vitality estimates that life expectancy could increase by at least 2.5 years, on average, for a person aged 40 years in this scenario.
• In addition to getting inactive people active, if currently active people increased their physical activity levels by 20%, the global economy could grow by in excess of $360bn every year; equivalent to the size of Singapore’s economy. Economic gains for the US economy would add $95bn (£73bn) a year to the economy until 2050, and $11bn (£8.5bn) a year for the UK economy, in this scenario.
• Economic gains can be attributed to the reduction of premature deaths in the working age population, improving rates of sick leave and improved levels of workplace productivity associated with regular exercise. 
  

6 November 2019 - The results of a ground-breaking academic study on the relationship between global economic growth and exercise, carried out by Vitality and RAND Europe, reveal significant benefits to the economy and life expectancy if physical activity levels increase globally. 

The study finds that the world’s GDP would gain more than $100bn (£80bn) each year until 2050 if people:
- walked 15 minutes more a day, or
- did a slow jog of half a mile (one kilometre) a day, or;
- took 1 500 extra steps a day.

The economic improvement arises from lower mortality rates (more people alive and contributing to the economy), reduced absenteeism, and lower presenteeism[1] driven largely by the impact of physical activity on mental health. 

Vitality’s platform of the world’s leading insurers is uniquely well-positioned to address significant global challenges like inactivity, as evidenced by the network’s commitment last year to make 100m people 20% more active by 2025. 

Gore continues: “This ground-breaking study provides proof of the relationship between exercise, productivity, mortality and economic growth. It strengthens our resolve to continue to encourage people to Move More and become part of a global health movement.”

The study, authored by Vitality and Rand Europe, aims to enhance the understanding of how inactivity affects all parts of the economy, beyond simply the traditional considerations of healthcare and mortality. It analysed three scenarios[2] that sketch a global picture of how increased physical activity can benefit not only individuals, but also businesses and global economies.

RAND Europe used a dynamic, multi-country macro-economic model to comprehensively assess the impact of physical inactivity on national economies on a consistent basis, allowing for an aggregation of the effect to the global economy. The study uses a novel approach to synthesise the existing evidence on physical activity and mortality risk by taking study design and publication bias into account. It utilises Vitality’s extensive proprietary dataset on workplace health, derived from its Healthiest Workplace initiative in seven countries, to assess the relationship between physical activity and performance at work. And it combines the mortality and productivity effects into a single model to project the true economic cost of physical inactivity over time.

Hans Pung, President of RAND Europe, comments on the significance of the study; “This is the first time that a multi-country macroeconomic model has been applied to the area of physical activity, facilitating a detailed assessment of the current and future implications of insufficient physical activity.” 

Pung also highlights the significance of the study for policymakers and employers alike, “The study points to a significant relationship between inactivity and productivity loss, driven largely by ill-health related presenteeism. We hope that these insights will support policy makers and employers with new perspectives on how to enhance the productivity of their populations.”

The study also found that by meeting at least the minimum World Health Organization (WHO) guidelines, up to five productive working days can be added every year. This is associated with physical and mental health gains, improved lifestyle behaviours (such as improved sleep quality) and even better engagement at work. 

In addition to productivity, individuals also benefit from improved mortality rates – ranging from 17% to 34% for the physically inactive moving to a state of becoming highly active. Vitality estimates this to result in 2.5 years of additional life (based on an average 40-year-old).

For the UK, the combined impact of improved productivity and reduced mortality from getting people to meet at least the WHO recommended levels of activity would contribute to GDP gains of at least $11bn (£8.5bn) annually, or $170 (£130) per person. This excludes the cost savings to the NHS associated with improvements in physical activity, resulting from a reduced incidence of diseases linked to inactivity, such as cardiovascular disease, certain forms of cancer, diabetes and mental health issues.

Methodology

Our research has shown that higher levels of physical activity are associated with increased levels of workplace productivity. To help employers and their employees, Vitality offers award-winning health insurance that is 5 Star Rated by Defaqto. The unique Vitality Programme rewards employees for their healthy living, encouraging positive behaviour changes that put their health and wellbeing at the forefront.