A research has shown that obesity is an underlying factor for Australia’s weak economy and production capacity.

Intelligence and data platform, GlobalData, in a report on Tuesday, stated that obesity drained $123 million daily and $45 billion annually from Australia’s economy.

The study said the chronic disease, which currently costs 1.7 per cent of the country’s GDP, negatively impacts households, workforce participation and women disproportionately.

The report titled, “Cost of Inaction in Treating Obesity in Australia,” stated that two in every three Australian adults are affected by obesity.

The study noted that about 240,000 working-age Australians are excluded from the workforce due to obesity-related factors. 

Explaining its impact on businesses, the report stated that Australian employers suffer $20.4 billion productivity loss from absenteeism and presenteeism. 

The study said $3 billion was lost in the healthcare and social assistance sectors, while $434 million is lost as absenteeism costs in the mining sector from about 225,000 workers.

The study added that obesity had a profound human and economic cost on the government budget and is also a key cause of gender inequity.

The report stated, “Government budgets absorbed $21.2 billion in reduced tax revenues ($6.5 billion) and increased program costs ($14.6 billion for Medicare, PBS, and Disability Support Pension).

“The healthcare system paid an additional $10.5 billion treating obesity-related complications – the largest attributable cost among modifiable risk factors.”

It added, “Women bear a disproportionate burden, accounting for 88% of workforce departures due to obesity. Employment losses for women are over seven times those for men. Earnings losses are five times higher among women than men – exacerbated by a lack of federal discrimination safeguards.”

A general practitioner in Melbourne, Steven Lu, faulted how Australians continued to downplay the unsuspected cost of living with obesity.

“We often underestimate the hidden cost of living with obesity. It’s not just about healthcare expenses – it can affect career choices, confidence to pursue opportunities, and missed experiences.”

“When we reduce stigma and enhance support, we do more than improve health – we maximise untapped economic potential,” the expert said.

Calling for immediate actions to address obesity prevalence, consulting executive director at GlobalData, Tim Dall, called on policy makers to take proactive steps to address the spate of obesity in the country.

“The question for policymakers is not simply what it costs to address obesity, but what it costs not to. Our analysis shows that inaction carries its own significant and ongoing price tag,” Mr Dall said.

On recommendations, the report suggested that the government must invest in prevention, ensure access to care, strengthen national coordination and champion equity and inclusion, as decisive actions to mitigate obesity.

“Comprehensive investment in prevention and treatment represents not a cost but a strategic investment in Australia’s fiscal sustainability, workforce productivity, and population health – with any delay only increasing future costs,” the report noted.

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