HIV and AIDS affect the economy

One way in which HIV and AIDS affect the economy is by reducing the labour supply through increased mortality and illness. Amongst those who are able to work, productivity is likely to decline as a result of HIV-related illness. Government income also declines, as tax revenues fall and governments are pressured to increase their spending to deal with the expanding HIV epidemic

According to UNAIDS 2007 data the overwhelming majority of the 33.2 million people with HIV, some 95% of the global total, live in the developing world. The proportion is set to grow even further as infection rates continue to rise in countries where poverty, hunger, poor health care systems and limited resources for prevention and care fuel the spread of the virus. The most affected region is Sub Saharan Africa with a great incidence in Southern Africa. The deaths of adults and children in Sub Saharan Africa account for more than 76 % of the global deaths due to the AIDS pandemic. Southern Africa alone accounted for almost one third (32%) of all new HIV infections and AIDS deaths globally in 2007. 35% of all people living with HIV live in this subregion. HIV prevalence varies considerably across this region - ranging from less than 1% in Madagascar to over 30% in Swaziland. The table below ilustrates the regional distribution of HIV/AIDS