Ozempic, a medication originally created to treat diabetes, also has a reputation as a weight loss miracle drug. According to Goldman Sachs, the popular medication, along with other weight-loss drugs in the glucagon-like peptide-1 class (GLP-1), could help lift the U.S. economy in the next few years.
While the purchase of these drugs could contribute significantly to the economy, more surprising factors like employability rates and household shopping routines could be affected too.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
How Ozempic could help the workforce
Ozempic and other GLP-1 drugs could potentially impact the overall health of the workforce — ultimately boosting the economy.
Goldman Sachs claims that poor health conditions like sickness and disability among employees can hurt economic growth due to the limited availability of workers and hours/days worked.
Goldman Sachs analysts, led by Jan Hatzius, said, “The main reason we see meaningful upside from healthcare innovation is that poor health imposes significant economic costs. There are several channels through which poor health weighs on economic activity that could diminish if health outcomes improve."
If illnesses and disabilities did not affect productivity in the workforce, the gross domestic product (GDP) could increase by as much as 10%.
How much the economy could be impacted
Goldman Sachs analysts predict that the use of weight-loss drugs could raise the country’s GDP by 1% within the next decade– which is about $360 billion per year.
More drug companies are also looking to enter the market and invite future competition with different variations of the popular weight-loss drugs. Currently, Novo Nordisk and Eli Lilly are the pharmaceutical front-runners for producing Ozempic and other GLP-1s.
According to an estimate from JPMorgan, the weight-loss drug market has the potential to reach $100 billion by 2030.
Other economic impacts of GLP-1s
Unexpected areas of the economy, like grocery shopping, may be impacted by households that use GLP-1 drugs. In a survey from Numerator, households using GLP-1s decreased monthly grocery spending by as much as 6% to 9% compared to those who don’t use them.
In the survey, they found that the types of products normally purchased have also shifted. Purchases of items like snacks, baked goods, and ice cream decreased, whereas purchases of healthy foods like vegetables, fish, and yogurt increased.
Large retailers like Walmart have already begun to notice the change in shopping behaviors.
Novo Nordisk’s CEO Lars Fruergaard Jorgensen said he received calls from various food company representatives who are on alert about the drug’s potential effects on their bottom lines.
Bottom line
By 2028 up to 70 million Americans could be taking weight-loss drugs like Ozempic.
With several signs pointing to an economic boost, other weight-loss drug variations may go to market soon. These drugs are also being tested to see if they are effective in treating everything from alcohol addiction to dementia.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.