Evaluating national income and life expectancy

In Japan, people have an average life expectancy of about 85 years at birth, surpassing other high-income economies such as Singapore, the US, and Australia. This impressive figure can be attributed to Japan's advanced healthcare system, which emphasizes preventive care, extensive medical research, and widespread access to high-quality medical services. Costs are kept low through strict government regulation of medical fees and drug prices to enable universal access. Additionally, cultural factors, such as dietary habits, play a significant role in enhancing the longevity of its population.
The US has one of the highest GDP per capita (US$81,632) but a life expectancy of 78.2 years, falling behind other high-income economies. This disparity is often attributed to the high prevalence of chronic diseases such as obesity, diabetes, and heart disease, which are linked to lifestyle factors. Furthermore, the US healthcare system – predominantly driven by capitalism – though technologically advanced, faces challenges related to accessibility and affordability, leading to disparities in health outcomes among different socioeconomic groups. High rates of gun violence and substance abuse also contributed to premature deaths which lowered life expectancy at birth.
Thailand’s life expectancy at birth increased to 79.7 years from 78.7 years in the 2023 ranking. Despite being a middle-income country, trade, which accounts for 129% of Thailand’s GDP, has played a crucial role in its economic development, leading to increased national income and an enhanced ability to invest in public health infrastructure. The country's strategic focus on export-driven sectors, particularly electronics, automotive, and agriculture, has helped generate sizeable revenue. This, in turn, has enabled the government to allocate more funds towards healthcare services, ensuring better access to medical facilities and treatments for its citizens.
Papua New Guinea ranks the lowest life expectancy among STI economies, with an average of 66 years at birth, due to its limited economic development. Despite being a middle-income country, the growth of its economy has been heavily reliant on the extraction of natural resources, such as minerals and timber, restricting its participation in high value-added supply chains. Political instability, corruption, and weak institutions further hinder the effective delivery of public services, including healthcare.

Trade plays a pivotal role in improving living standards and life expectancy. Higher trade volumes enable economies like Japan, Hong Kong, and Singapore to invest more in their healthcare systems. By fostering an environment conducive to international trade, governments can increase access to a diverse range of goods and services, including medical supplies and advanced healthcare technologies, which are crucial for improving health standards.

To fully realize the benefits of trade, strong adjacent policies are essential including in healthcare infrastructure, education systems, and social equity. Addressing challenges such as corruption, political instability, and inequality improve life expectancy too.

Access more insights and data on the Hinrich-IMD Sustainable Trade Index by downloading the STI 2024 report and interactive index.

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