The link between LGBTQ+ inclusion and economic performance
By the Global Equality Caucus in collaboration with Open for Business
Across multiple regions, LGBTQ+ communities continue to face discrimination that have severe implications not only for their health and wellbeing, but also for national economic performance. Legal exclusion, barriers to healthcare, employment discrimination, and social stigma contribute to poorer public health outcomes, reduced labour market participation, and diminished productivity. Research by Open for Business demonstrates that these impacts extend beyond individuals, carrying measurable fiscal and macroeconomic consequences for countries.
The Global Equality Caucus, in partnership with Open for Business, is working with legislators to strengthen the evidence base linking LGBTQ+ inclusion to economic performance.
Criminalisation and Legal Risk Environments
Globally, 65 jurisdictions criminalise private, consensual same-sex sexual activity. The majority of these jurisdictions explicitly criminalise sex between men via ‘sodomy’, ‘buggery’ and ‘unnatural offences’ laws. 41 countries criminalise consensual sexual activity between women, and 12 retain the death penalty as a legal possibility for same-sex intimacy, with at least six actively implementing it. In addition, 13 countries criminalise the gender identity and/or expression of transgender people.
Such legislative frameworks shape broader governance and economic conditions. Criminalisation increases legal uncertainty, limits labour market participation, and may affect a country’s international standing. From a policy perspective, the review and reform of these laws is directly relevant to economic competitiveness and regulatory stability.
The Impact of LGBTQ+ Criminalisation on the Labour Markets
Research by Open for Business indicates that countries with more inclusive LGBTQ+ policies tend to demonstrate stronger economic indicators than those that criminalise or discriminate.
In East Africa, LGBTQ+ individuals report barriers to formal employment and instances of workplace discrimination, reducing productivity and taxable income. Following the passage of Uganda’s Anti-Homosexuality Act, many individuals reported employment dismissals, illustrating how legislative shifts can directly affect labour market participation.
According to the Open for Business City Rankings 2025, nclusive cities score four times higher in human capital, twice as high in innovation, and 2.5 times higher in entrepreneurship compared to less inclusive cities (Open for Business City Ratings 2025). In a global economy where skilled workers and multinational firms are increasingly mobile, legal and policy environments influence decisions on investment and expansion. This performance is driven by underlying dynamics: inclusive environments attract and retain diverse talent, foster psychological safety, and enable the exchange of ideas, all of which are critical to innovation and entrepreneurship.
Public Health, Productivity and Fiscal Impact
In East Africa, poor health outcomes linked to LGBTQ+ discrimination are estimated to cost economies over USD 1 billion annually. In Southeast Asia, discrimination is estimated to reduce GDP by up to 1.47% per year due to health disparities and wage gaps. Across six Southeast Asian economies, diminished public health outcomes and lost productivity may exceed USD 32 billion annually.
Barriers to accessing sexual and reproductive health services, particularly HIV-related care, contribute to long-term fiscal pressures and reduced workforce participation. Strengthening inclusive public health policy can therefore support improved health outcomes and economic efficiency.
To support policymakers, the Global Equality Caucus developed the HIV Prevention Handbook: Best Practices for Legislators, which outlines different prevention strategies and how legislators can advocate in their assemblies for policies that will end the epidemic.
Tourism, Consumer Markets and Global Competitiveness
Criminalisation of the LGBTQ+ community has economic implications in tourism and consumer markets. The global LGBTQ+ travel market is valued at USD 331 billion in 2024 and projected to reach USD 553 billion by 2031. LGBTQ+ consumers globally are estimated to spend more than USD 4.7 trillion annually.
Countries with restrictive legal environments may face reputational risks that affect tourism flows and foreign direct investment, whereas inclusive legal frameworks can contribute to stronger national branding and competitiveness in global markets.
A Legislative Consideration for Growth
Across regions, evidence demonstrates a correlation between LGBTQ+ inclusion and economic performance. Inclusive cities and countries consistently demonstrate stronger human capital development, innovation capacity, and economic resilience.
For legislators, reviewing and modernising legal frameworks affecting LGBTQ+ communities is a component of economic strategy. Legal clarity, anti-discrimination protections, and inclusive public health policy can contribute to labour market participation, productivity, investment attraction, and sustainable growth. As legislatures consider reforms, engaging with evidence and peer networks is essential.
Research from Open for Business demonstrates the economic value of LGBTQ+ inclusion, while networks such as the Global Equality Caucus provide legislators with a platform to share policy solutions, build alliances, and strengthen open, democratic institutions that foster sustainable growth.