It´s time to rethink growth!

From left: Dóra Guðrún Guðmundsdóttir – Director of Public Health, Directorate of Health and Chair of the Wellbeing Economy Forum; Soffía S. Sigurgeirsdóttir – CEO, Langbrók; Elva Rakel Jónsdóttir – CEO, Festa

For decades, nations have measured success through economic growth, expressed in Gross Domestic Product (GDP). But we rarely have asked: What does this growth cost us? How does it affect people’s health and wellbeing, social justice, and the natural resources our lives depend on? Much of what drives GDP growth today undermines the very foundations of wellbeing, from construction projects that increase greenhouse gas emissions, to heavy transport that pollutes air, to the relentless consumption of disposable goods.

According to the latest World Economic Forum Global Risks Report (2025), overexploitation of resources and the degradation of ecosystems have a direct impact on productivity, growth, and economic stability. The financial costs for nations and businesses of climate change is a reality which is escalating fast. Added to this is the growing cost of reduced labor productivity due to worsening health and wellbeing among workers.

Societies are also facing escalating public health challenges such as depression, stress, loneliness, social isolation, and burnout. It’s estimated that about 330 million people worldwide now live with depression. The World Health Organization (WHO) identifies depression as one of the leading causes of disability globally, including in Iceland. According to the OECD, the total cost of mental health disorders averages 4.9% of GDP in member countries, with about half of that due to lost productivity and reduced work performance. This trend is clearly visible in Iceland as well.

According to the newly published Talnabrunnur report from the Directorate of Health, one in three adults rates their mental health as poor, nearly a third report high stress, 11% often feel lonely, only half say they are pleased, and just 17% experience a strong sense of wellbeing. These figures make it clear that we can and must do better.

This connection, the pursuit of maximising economic growth and the decline of wellbeing, calls for a new approach. We must ask ourselves: At what point does more growth stop delivering real benefits to society and start undermining health, happiness, social connection, and sustainability?

A New Vision of Success

A Wellbeing Economy offers a new way forward. It focuses on measuring and improving real quality of life, for people and the planet, not just measuring the economic output. The goal is to ensure health, equality, education, sustainability, and social security. Decisions, whether in public policy or business strategy, should aim to enhance wellbeing, not simply to maximise productivity.

Iceland has already taken an essential step in this direction by introducing 40 wellbeing indicators covering social, economic, and environmental factors. These metrics are aligned with the UN Sustainable Development Goals (SDGs) and the EU Sustainability Reporting Standards (ESRS), creating a shared framework for assessing progress through a holistic lens.

A Shared Responsibility Between Government and Business

Wellbeing is not just a government goal but a shared responsibility among businesses and society as a whole. Companies and organisations have the opportunity to be active participants in this transformation by integrating wellbeing principles into strategy, human resource management, and responsible business practices.

Organisations that prioritise wellbeing at the center of their operations are more resilient in the face of crisis and change. By prioritising employee wellbeing and fostering a healthy work–life balance, the can enhance job satisfaction, engagement, innovation, and overall productivity. Ultimately, what matters is not merely that we grow, but how we grow and for whose benefit.

If we don’t change the economic system, the current trajectory will continue. But if we reshape it in favor of wellbeing, much can change for the better.

Article by

Dóra Guðrún Guðmundsdóttir – Director of Public Health, Directorate of Health and Chair of the Wellbeing Economy Forum

Soffía S. Sigurgeirsdóttir – CEO, Langbrók

Elva Rakel Jónsdóttir – CEO, Festa

This article was published online at Vísir.is in Icelandic here: https://www.visir.is/g/20252789249d/timi-til-ad-endurhugsa-hagvoxt-