What Are the Economic Effects of AIDS?

AIDS is a devastating illness. It will often affect people years after being exposed to the condition. During this incubation period, it is possible for people to spread the disease to others without ever meaning to or knowing that this was happening. It is even possible to spread the condition to a person's unborn child, resulting in a child who will be born with AIDS. If the devastation that the condition can cause to a person and his or her family were not bad enough, the disease can cause serious economic problems for an entire country if the condition is allowed to run rampant.

Labor Supply

• With 70 percent of the world's AIDS cases being found in Africa in 2001, the epidemic has severely hindered the labor forces of the African nations. There are simply not enough workers because many of the workers are either ill with HIV/AIDS or are caring for those with HIV/AIDS. This widespread epidemic has reduced average national economic growth by 2 percent to 4 percent per year across Africa.

Rise in Imports

• Due to the lack of labor and the number of sick individuals in a community, there may be a higher number of imports than exports into a country or community. This increase of imports costs the people money that they simply do not have and can cause the bankruptcy of a nation.

Indirect Costs

• Businesses in Africa may experience an increase in indirect expenses due to AIDS illnesses and deaths. These expenses include medical care for their employees, hiring and training costs of new employees and lost time during illnesses.