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To: Joe NYC who wrote (73133)12/24/2025 4:49:08 PM
From: neolibRead Replies (1) | Respond to of 73149
 
This is the chatbots take on it. So how can this be that it added 0.76% of the 4.3% total, and yet it was due to rising prices and not increased demand. Something is wrong with the "real GDP" part in that case...

Me: Did increase healthcare costs contribute to higher GDP in Q3, 2025?

AI Overview

Yes, increased
healthcare spending was a significant contributor to the higher-than-expected US GDP growth of 4.3% in the third quarter of 2025.

Healthcare expenditures, particularly for outpatient, hospital, and nursing home services, along with prescription drugs, were a leading driver within the robust consumer spending category.

Key details regarding healthcare's contribution:

  • Major Driver of Consumer Spending: Consumer spending was the primary engine of overall GDP growth, and services, especially healthcare, accounted for most of that increase.
  • Specific Percentage Point Contribution: Healthcare spending alone contributed approximately 0.76 percentage points to the total 4.3% GDP growth in Q3.
  • Reflection of Rising Costs: The increased spending in healthcare is widely attributed to rising prices rather than solely a healthy increase in demand. The overall price index for personal consumption expenditures (PCE) for the quarter also accelerated.

While increased spending on healthcare boosted the technical measure of GDP, some economists view this as a potential headwind for consumers, who face higher prices and may be going deeper into debt to cover non-discretionary costs