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Mental Health among Adolescents and Young Adults in Latin America and the Caribbean: Indirect Costs of Mental Health Illness and the Economic Impact of Mitigation Policies

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2025-07-09
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2025-07-09
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This document analyzes the indirect costs of mental health for adolescents and young adults in Latin America and the Caribbean (LAC) region and its potential impact in lowering human capital in the region. It uses a broad definition of mental health conditions (MHC), classified into four components: neurological disorders (ND), mental health disorders (MHD), substance use disorders (SUD), and self-harm and suicide (SHS). The study documents the relevance and rapid increase of the prevalence of mental health conditions in the world and particularly in the region. From 1990 to 2019, mental health conditions have greatly increased their share of the global burden of disease, especially in low- and middle-income countries. In 2019, mental health conditions (including neurological disorders) accounted for losses of 3,618 disability-adjusted life years (DALYs) per 100,000 population in the LAC region. Mental health conditions among adolescents and young adults account for a significant loss of gross domestic product (GDP) in LAC countries. Considering just the number of people aged 15 to 24 in the labor force, these losses are estimated at 0.34 percent of GDP in 2019, equivalent to nearly US$38 billion in nominal terms or US$78 billion when measured in GDP at purchasing power parity. The paper highlighted the need to improve data collection (especially on epidemiology, service delivery, direct and indirect costs, and best practice outcomes) associated with MHC in the region to obtain better estimates. This will be key to strengthening the capacity of governments to monitor and evaluate the implementation of mental health programs, as well as tracking their impact, and to ensure effective and responsive outcomes for young people's needs.
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Gordillo-Tobar, Amparo; Medici, Andre Cezar; Calvo, Nashira. 2025. Mental Health among Adolescents and Young Adults in Latin America and the Caribbean: Indirect Costs of Mental Health Illness and the Economic Impact of Mitigation Policies. © World Bank. http://hdl.handle.net/10986/43435 License: CC BY-NC 3.0 IGO.
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