External health expenditure (% of current health expenditure)

Definition: Share of current health expenditures funded from external sources. External sources compose of direct foreign transfers and foreign transfers distributed by government encompassing all financial inflows into the national health system from outside the country. External sources either flow through the government scheme or are channeled through non-governmental organizations or other schemes.

Description: The map below shows how External health expenditure (% of current health expenditure) varies by country. The shade of the country corresponds to the magnitude of the indicator. The darker the shade, the higher the value. The country with the highest value in the world is Malawi, with a value of 53.76. The country with the lowest value in the world is Japan, with a value of 0.00.

Source: World Health Organization Global Health Expenditure database (http://apps.who.int/nha/database).

See also: Country ranking, Time series comparison

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Development Relevance: Strengthening health financing is one objective of Sustainable Development Goal 3 (SDG target 3.c). The levels and trends of health expenditure data identify key issues such as weaknesses and strengths and areas that need investment, for instance additional health facilities, better health information systems, or better trained human resources. Health financing is also critical for reaching universal health coverage (UHC) defined as all people obtaining the quality health services they need without suffering financial hardship (SDG 3.8). The data on out-of-pocket spending is a key indicator with regard to financial protection and hence of progress towards UHC.

Original Source Notes: The World Health Organization (WHO) has revised health expenditure data using the new international classification for health expenditures in the revised System of Health Accounts (SHA 2011). WHO’s Global Health Expenditure Database in this new version i

Statistical Concept and Methodology: The health expenditure estimates have been prepared by the World Health Organization under the framework of the System of Health Accounts 2011 (SHA 2011). The Health SHA 2011 tracks all health spending in a given country over a defined period of time regardless of the entity or institution that financed and managed that spending. It generates consistent and comprehensive data on health spending in a country, which in turn can contribute to evidence-based policy-making.

Aggregation method: Weighted average

Periodicity: Annual