HIV and AIDS slows economic growth by destroying the man with the ability of production (human capital). Without proper nutrition, health facilities and medicines in developing countries, people in these countries became victims of AIDS. They not only can not work, but will also require adequate health facilities. Forecast that this will lead to economic collapse and relationships in the region. In areas heavily infected, the epidemic has left many orphans are cared for by grandparents who were old.
The higher rate of death (mortality) in a region will lead to shrinking working population and those skilled. Fewer workers will be predominantly young, with knowledge and experience fewer employment so that productivity will decrease. Increased worker leave to see family members who are sick or on leave due to illness will also reduce productivity.
Increased mortality will also weaken the mechanisms of production and human resource investment (human capital) in the community, which is due to loss of income and the death of the parents. Because of AIDS caused the death of many young adults, it weakens the population of taxpayers, reduce public funding such as education and health facilities that are not associated with AIDS.
This puts pressure on state finances and slow economic growth. Effects slowing growth in the number of taxpayers will increasingly be felt in case of increased spending for the handling of the sick, training (to replace sick workers), the replacement cost of illness, and care of AIDS orphans. This is especially likely to occur if the sharp increase in adult mortality lead to displacement of responsibility and blame, from family to government, to deal with the orphans.
At the household level, AIDS caused the loss of revenue and increase health spending by a household. Decreased income leads to reduced expenditure, and there are also effects the transfer of education expenditure towards health and funeral expenses. Research in Côte d'Ivoire showed that households with HIV / AIDS patients to pay twice as much for medical care than for other household expenses.
