OBJECTIVES: The global aging population and subsequent demographic shifts lead to ever-increasing demands for informal care. This study aims to estimate the economic costs of informal care provided to individuals with disabilities and chronic diseases in Hong Kong.

METHODS: We utilized data from the General Household Survey conducted by the Census and Statistics Department (C&SD) from August 2019 to December 2020. A representative sample of 146,196 informal caregivers of individuals with disabilities or chronic diseases in Hong Kong were included, and their time spent on unpaid care was collected. We employed the human capital approach to value the opportunity cost of informal care, by assessing the potential income losses incurred in different demographic groups of caregivers. We also applied the proxy good method to assess the economic implications of substituting informal care with formal care services. The territory-wide cost of informal care was calculated using a prevalence-based bottom-up approach, multiplying the number of caregivers by the economic cost incurred per person.

RESULTS: The total annual cost of informal care for individuals with disabilities and chronic diseases surpassed US$988 million, approximately 4% of Hong Kong's total health expenditure in 2020. Caregivers who have quitted jobs due to caregiving duties accounted for the majority of overall costs – representing 15% of caregivers but 55% of total economic costs. The proportion of female caregivers (65.7%) far exceeds that of males (34.3%), with women aged 35 and above being the primary demographic group (60.7%). Based on proxy good method that replaced unpaid informal care by formal care services, economic costs would be five times higher.

CONCLUSIONS: Informal caregiving plays a vital economic role in Hong Kong at lower costs to formal care. Gender disparities and their impact on workforce participation must be considered by policymakers to manage caregiving in the region.