Adolescent Mental Health in LAC: Hidden Costs, Lost Futures, Urgent Action Needed

In a sweeping study by the World Bank’s Health, Nutrition, and Population Global Practice, drawing on data from the Institute for Health Metrics and Evaluation (IHME), United Nations Department of Economic and Social Affairs (UNDESA), and the International Labour Organization (ILO), the economic costs of mental health conditions (MHC) among adolescents and young adults in Latin America and the Caribbean (LAC) are laid bare. The discussion paper, authored by Amparo Gordillo Tobar, Andre Cezar Medici, and Nashira Calvo, classifies MHC into four categories: neurological disorders (ND), mental health disorders (MHD), substance use disorders (SUD), and self-harm and suicide (SHS). The report highlights how these conditions not only impact individual well-being but also erode the region’s development potential by quietly stripping billions from national GDPs. In 2019, the indirect costs associated with mental health conditions among young people aged 15–24 in the labor force totaled nearly $38 billion in nominal terms, or $78 billion in purchasing power parity, equivalent to 0.34 percent of the region’s GDP.

Youth at Risk: A Growing Burden in a Demographic Crossroad

Mental health conditions have rapidly gained prominence in global disease burden metrics, particularly in low- and middle-income regions like LAC. From 1990 to 2019, mental health conditions increased significantly in their share of global disability-adjusted life years (DALYs), reaching 3,618 DALYs per 100,000 in LAC. Among young people, aged 10 to 24, mental illness has become the leading cause of disease burden in the region. As this demographic group represents the core of future labor forces, innovation, and productivity, the implications are grave. Mental health issues, depression, anxiety, substance use, and neurological impairments are impeding academic achievement, diminishing employability, and distorting personal development. The study estimates that over 22 million youth in LAC currently live with some form of mental health condition. Left unaddressed, this threatens to reduce the region’s long-term competitiveness, deepen inequality, and hinder human capital formation.

Girls Bear the Weight of Emotional Distress, Boys Face Behavioral Risks

The study reveals significant gendered patterns in the types and prevalence of mental health disorders. While adolescent boys and young men are more prone to substance use, conduct disorders, and self-harming behaviors, girls are disproportionately affected by anxiety, depression, and eating disorders. In 2019, girls accounted for 57 percent of all MHC-related DALYs among youth aged 10–24. The impact of depression and anxiety is particularly pronounced, with girls suffering from these at far higher rates than their male counterparts. Conversely, self-harm and substance abuse, particularly drug use, are more common and deadly among boys. The data also highlight that the indirect costs related to MHCs are especially high among females for conditions like headaches and mood disorders. These patterns reflect not only biological and psychological factors but also deep-rooted social determinants, including gender-based violence, stigma, and unequal access to support systems.

Regional Disparities and Methodological Innovations

Geographically, the burden of mental health varies across the region, with countries like Guyana, Suriname, Brazil, and Chile recording the highest rates of DALYs per 100,000 youth. Brazil alone accounted for over two million DALYs in 2019. The study also innovates in how it calculates the economic impact of these conditions. Traditionally, indirect costs are estimated by multiplying DALYs by GDP per capita. However, the authors refine this by limiting the calculation to those in the active labor force, people aged 15–24 who are employed or seeking work, offering a more accurate reflection of productivity losses. Using this adjusted methodology, indirect costs still amounted to 0.34 percent of GDP regionwide, reaffirming the vast economic implications. Countries like Guyana (0.63%), Belize (0.54%), and Barbados (0.56%) reported particularly high proportional losses. Even under this more conservative model, the findings point to a massive and underrecognized challenge for policymakers.

From Data Gaps to Policy Solutions: A Call for Action

A critical limitation across the region is the lack of quality data. Inconsistent definitions, weak reporting systems, and cultural stigma around mental illness all contribute to chronic underreporting. The study urges governments to invest in mental health data systems, from epidemiological surveillance to service delivery tracking and cost analysis. The authors call for integrated, culturally appropriate mental health policies, especially those that embed services in schools, primary healthcare, and social protection programs. Community-based interventions are emphasized as both cost-effective and scalable, especially in reaching marginalized youth. The report also highlights the urgent need to support pregnant adolescents through dedicated perinatal mental health programs, noting the long-term intergenerational risks of neglecting this group. Finally, the authors stress that youth themselves must be involved in shaping these policies, whether through participatory consultations, youth-led programs, or civic platforms, to ensure interventions are relevant, inclusive, and empowering.