Poor mental health is now affecting more than one in five people across Europe and OECD countries — with the long-term economic damage expected to be enormous.
A new OECD and EU report estimates that mental health conditions could reduce GDP across EU countries by an average of 1.7% every year until 2050, creating one of the biggest hidden economic drains of the coming decades.
The costs go far beyond healthcare alone.
Across Europe, people are increasingly missing work, leaving jobs, or struggling to function productively while at work due to poor mental health — a phenomenon known as “presenteeism”.
The figures highlight the sheer scale of the problem.
Mental health conditions are currently estimated to cost EU healthcare systems around €76 billion every year, equivalent to roughly 6% of total health budgets across the bloc.
At the same time, poor mental health is estimated to reduce healthy life expectancy by around 2.5 years.
Young people, women, and lower-income groups are being hit the hardest.
Among diagnosed cases:
- Anxiety disorders account for around 40%
- Depression makes up roughly 20%
- Substance use disorders account for 17%
Other conditions include bipolar disorder, schizophrenia, eating disorders, autism spectrum disorders, and intellectual disabilities.
But one of the biggest warning signs is what’s happening among younger generations.
More than 1 in 4 people aged 15 to 24 are currently experiencing a mental disorder, with researchers warning that untreated conditions in adolescence often continue into adulthood — affecting long-term health, education, productivity, and earnings.
The report also highlights how mental health problems are not affecting everyone equally.
Women consistently report higher levels of anxiety and depression, while men are more likely to experience alcohol and substance use disorders.
Meanwhile, rising inequality appears to be making the situation worse. Evidence from high-income countries suggests that increasing income inequality is associated with around 19% higher rates of mental health problems across the population.
Climate anxiety is now emerging as another major factor.
An estimated 84% of young people globally say they experience moderate to extreme worry about climate change and the future of the planet.
Wars and geopolitical instability are also leaving lasting psychological scars, contributing to rising rates of post-traumatic stress and generalised anxiety that can affect entire generations.
Social media is increasingly under scrutiny too.
The report points to problematic social media use — particularly among young people — as a growing contributor to depression and declining mental wellbeing, although researchers note that factors like sleep quality and physical activity can influence its impact.
Beyond its impact on quality of life, poor mental health is also contributing to mortality rates across Europe. Mental health conditions are linked to approximately 28,000 premature deaths each year, with severe depression and alcohol-related disorders among the leading factors associated with reduced life expectancy.
Despite the scale of the crisis, experts say many solutions already exist — and some are surprisingly cost-effective.
The report highlights evidence-based interventions in schools, workplaces, and primary healthcare systems that have already been shown to improve mental health outcomes while also increasing productivity and workforce participation.
Some interventions are even considered cost-saving in the long run.
Researchers say many countries still struggle to effectively implement mental health policies, despite increasing evidence that early intervention can substantially reduce both economic and human costs.
12.05.2026.
