ILR’s new research, International Tort Costs, measures and compares tort system costs in the United States, the United Kingdom, the European Union’s five largest economies—Germany, France, Italy, Spain, and the Netherlands—Australia, and Canada.
The study finds that tort costs are rising across most jurisdictions studied and, in many cases, outpacing both economic growth and inflation. From 2014 to 2023, tort costs as a share of GDP increased by an average of 7.05% per year across the jurisdictions studied—exceeding average annual GDP growth of 4.63% and average annual inflation of 2.60% over the same period.
Among the jurisdictions studied, the United States continues to have the highest tort cost burden, reaching 2.15% of GDP in 2023—nearly three times the study average. The United Kingdom has experienced the fastest growth, with its tort cost burden rising to 1.22% of GDP in 2023, more than doubling since 2014. If current trends continue, the U.K. is on track to surpass the United States as a share of GDP by 2029-2030.
This consistent upward trend points to a growing economic drag, as more economic activity is diverted toward litigation-related costs rather than investments that support competitiveness, growth, and opportunity.