Poor mental health is one of the most significant public health and economic challenges in Europe, according to a new report by the OECD.
Poor mental health is estimated to cost around €76 billion to European economies every year, approximately 6% of total health budgets, according to a new report by the Organisation for Economic Co-operation and Development (OECD).
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Mental health conditions are one of the most significant public health and economic challenges, and their impact extends beyond individuals, the report noted.
A large part of these costs comes from the fact that mental conditions exacerbate other physical conditions, leading to more complex and expensive treatments, the OECD said.
The organisation’s estimates also found that these conditions will deeply impact the labour market, causing an average annual reduction of 1.7% of GDP between 2025 and 2050.
This decrease in GDP, the report noted, is primarily driven by reduced workforce participation and productivity.
According to the OECD, major depressive disorders, generalised anxiety disorders, and alcohol use disorders will lead to a 2.5‑year reduction in healthy life expectancy across the EU over the next 25 years, equivalent to approximately 28,000 premature deaths every year.
Mental health struggles are increasing
Across OECD countries, the rate of mental disorders has increased by nearly 21% over the past two decades.
Poor mental health affects more than one in five people across OECD and European Union countries.
Anxiety disorders are the most common, accounting for approximately 40% of all cases, followed by depressive disorders at 20% and substance use disorders at 17%.
The figures are likely to “underestimate the true scale of the problem, as many milder conditions go undiagnosed or remain unreported due to persistent social stigma and limitations within existing health systems,” the report noted.
Young people are suffering the most
Mental health conditions do not affect everyone equally; women, young people, and those with low socioeconomic status are particularly impacted, the report found.
Among children and young adults, the prevalence of mental disorders is high and has been rising. In recent years, more than one in four people between the ages of 15 and 24 have experienced a mental health disorder, according to OECD data.
This is particularly concerning as mental health conditions starting before the age of 24 are more likely to persist into adulthood if untreated, with life‑long consequences.
The report points to multiple societal and environmental factors as the main drivers of the increase. Early COVID-19 pandemic restrictions, war, geopolitical instability, and economic crises have all contributed to worsening mental health.
“Climate change anxiety has emerged as a significant concern for the younger generation, with 84% of young people globally reporting moderate to extreme worry about the future of the planet,” the authors wrote.
They added that problematic social media use is emerging as a significant concern, especially among younger populations.
Mental health improves going into adulthood, except for a slight increase among those aged 95 and above.
National policies fall short
Despite national mental health policy frameworks being in place in most countries, a significant treatment gap remains, the report warns.
Around 67.5% of individuals needing mental healthcare in EU countries are estimated not to have access to treatment.
The report identifies several barriers that prevent timely access to treatment, such as out‑of‑pocket payments for certain therapies, a lack of specialised services in rural areas, and shortages of professionals.
According to the OECD, a key reform trend is shifting the management from hospitals to community-based interventions, including primary care, schools, and workplaces.
“Early, preventive approaches outside hospital settings can be effective and less expensive,” the authors noted.
