Question

Explain the likely impact of construction of 100 new super specialty hospitals in a nation on Gross Domestic Product (GDP) and welfare in the economy.

Hint:

Investment in healthcare infrastructure not only boosts GDP but also enhances long-term welfare by improving the quality of life and productivity of the population.

Answer 1

The construction of 100 new super specialty hospitals will result in an increase in GDP, as it will lead to more investments in infrastructure, creating employment opportunities, and generating income. The increased expenditure in construction and healthcare will have a multiplier effect on the economy, driving higher consumption and business activities. Moreover, these hospitals will improve the healthcare infrastructure of the country, leading to better health outcomes, reduced mortality rates, and improved labor productivity, thereby boosting overall welfare. The establishment of these hospitals will also lead to an increase in the availability of healthcare services, which can improve the quality of life for the citizens.