McKinsey Health Institute

Investing in the future: How better mental health benefits everyone

| Report

At a glance

  • Despite contributing to a substantial 290 million disability-adjusted life years (DALYs) of the global disease burden, mental health conditions only receive 2 percent of domestic government healthcare funding globally, resulting in an annual funding gap of $200 billion to $350 billion.
  • Scaling known, cost-effective interventions to prevent, treat, and help people recover from mental health conditions (which include mental and substance use disorders) could avert 150 million DALYs globally in 2050.
  • Each $1 invested in scaling mental health interventions could have an economic return of $5 to $6.

Noncommunicable diseases (NCDs), such as cancer, depression, diabetes, and heart disease, have emerged as a formidable challenge to global health, representing a substantial shift from the infectious disease paradigm that dominated much of the 20th century. NCDs cause 76 percent of deaths globally, and their burden has been steadily rising at 1.3 percent annually over the past few decades.1 Yet within this crisis lies an underappreciated opportunity for transformative change: investing in mental health.

Mental health conditions2 contribute to 290 million disability-adjusted life years (DALYs), but they only receive approximately 2 percent spending on healthcare by governments around the world.3 Addressing the $200 billion to $350 billion mental health investment gap can have a transformative potential on the global NCD epidemic and economy.4 McKinsey Health Institute (MHI) analysis finds that implementing and scaling proven mental health interventions globally by 2050 could reduce direct and indirect mental health disease burden by over 40 percent. Furthermore, every dollar invested in expanding these interventions has the potential to generate an economic return of $5 to $6 in GDP growth globally.

Over the past 15 years, the United Nations General Assembly has convened three High-Level Meetings on the Prevention and Control of NCDs, with another scheduled for September 2025.5 The latest of these meetings, held in 2018, recognized mental health conditions as exacerbating the NCD crisis both directly and indirectly. Mental health conditions are the leading contributors to the global morbidity burden measured in years lived with disability (YLDs) and are on par with cardiovascular and circulatory diseases when measured by DALYs.6 Those with mental health conditions can face reduced life expectancy.7 Data makes the case clear: Individuals with mental health conditions experience significantly worse outcomes from NCDs compared with those without such conditions, compounding the overall disease burden. For example, people with depression are up to four times more likely to experience and die from cardiac-related problems than those without depression.8

By 2050, scaling cost-effective, evidence-based mental health interventions could reduce the mental health disease burden by over 40 percent, or 150 million DALYs. This investment could also add 1.1 years to healthy life expectancy9 and contribute up to $4.4 trillion to the global economy in 2050. The profound influence of mental health conditions on the progression and management of NCDs highlights the urgent need for increased investment in cost-effective mental health interventions, both to improve access to current treatments and to drive innovation in developing even more affordable solutions.

Behind every dollar invested, there is a person with a mental health condition whose life could become healthier. But investing in mental health is more than a way to improve individual lives; it’s a strategic economic move to reduce the global NCD and mental health burden, extend healthy lifespans, and unlock substantial financial benefits. The following insights shed light on this critical, underappreciated opportunity to invest in mental health as a strategy for global health and economic growth.

Mental health conditions exceed leading NCDs in morbidity burden

While other noncommunicable diseases, such as diabetes, account for more deaths, mental health conditions account for more years lived with disability.

Mental health conditions increase the risk for and exacerbate other NCDs

Mental health conditions directly and indirectly contribute to the total noncommunicable disease burden.

Opportunity to intervene early with mental health conditions

Over half of the primary disease burden of mental health conditions is attributed to individuals aged younger than 40.

Scaling mental health interventions adds substantially to healthy life expectancy

Scaling mental health interventions could avert 150 million disability- adjusted life years by 2050.

Scaling proven and cost-effective mental health interventions can bridge access gaps

Therapeutic mental health interventions, combined with prevention and risk reduction strategies, will be essential for reducing disease burden.

Mental health interventions can be scaled cost-effectively

Mental health interventions are cost-effective in reducing disease burdens for both mental health and noncommunicable diseases overall.

Opportunity to invest in the brain economy

Scaling mental health interventions could contribute $4.4 trillion to the global economy and increase the global labor force by 60 million in 2050.

Addressing the rising burden of NCDs is a pressing global challenge, and mental health interventions offer a uniquely cost-effective solution with outsize impact, increasing both healthy life expectancy and economic returns. Achieving this future requires both increased funding for mental health conditions and prioritizing evidence-based mental health interventions.

Countries of all sizes and income levels can consider their disease burden from mental health conditions and funding allocations for mental healthcare. In many cases, they will find it’s a mismatch. As part of their NCD and mental health strategy, countries can consider a base guideline from the Lancet Commission on Global Mental Health and Sustainable Development’s mental health funding targets of 5 percent of health budget for low- and middle-income countries and 10 percent for high-income countries to close the annual mental health care investment gap. However, achieving 90-90-90 impact and addressing the needs of the entire population will require a comprehensive public health approach and significantly greater funding beyond these government targets. Given the substantial mental health government financing gap, all sectors—including private and social—have a role to play as catalytic donor funding is needed. Furthermore, given that the benefits of mental health interventions extend beyond just mental health to the broader NCD burden as well, it will be essential to engage a wide range of NCD and public health stakeholders, alongside traditional mental health stakeholders.

Even within current budgets, there is an opportunity to spend more strategically to achieve better outcomes by focusing on cost-effective, evidence-based interventions. Countries can prioritize these interventions by shifting funding from institutional care to community-based approaches such as integrating mental health care into existing healthcare pathways. Currently, 66 percent of government mental health budgets globally are allocated to institutional care, such as long-stay mental hospitals,10 despite community-based services being more accessible, cost-effective, and delivering better outcomes.11 The World Health Organization’s Global NCD agenda underscores the need to address mental health alongside NCD prevention and control.12 Programs such as the WHO’s Mental Health Gap Action Programme (mhGAP) and UNICEF’s Mental Health and Psychosocial Support (MHPSS) have successfully implemented integrated care models in multiple countries, allowing patients to receive check-ups for both NCDs and mental health conditions in a single visit.13

These analyses not only make practical sense and offer long-term economic growth potential but offer the chance for cross-sector leaders to meaningfully improve the lives of individuals. There is an inextricable link between mental health conditions and physical health NCDs, and this analysis shows that addressing mental health conditions is key to reducing the rising NCD burden. By working together, leaders have an opportunity to create change and sustainable reductions in the NCD burden, extend healthy lifespans, and realize the transformative potential of mental health interventions on global health outcomes and economies.

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