The rapid spread of HIV in the 1980s and 1990s in the non-industrialised wo
rld is now leading to an AIDS epidemic. This in turn is having a demographi
c and economic impact on these societies. This article assesses the most re
cent evidence for these impacts. It concludes that, while there is already
a real and measurable impact, there is far worse to come. The demographic c
onsequences will be particularly serious. Economic impact is rather more un
certain, and the article looks at the macro-economic impact as well as that
on firms. In addition, it is postulated that economics may not be the most
appropriate discipline to assess the true effects of the disease.