Animal health and economics are closely linked. Any decision taken to prevent, control and eliminate an animal disease is based not only on the technical knowledge available about a particular disease but also on the effectiveness and socio-economic aspects associated with interventions and mitigation measures implemented by governments, producers and all the actors along the livestock value chains. Economic rationale drives decisions in assessing particular investments which are likely to result in a benefit for society or for a specific stakeholder, including livestock farmers and communities. These guidelines prepared by FAO will contribute to a better understanding of the importance of economic analysis when assessing the impact of a particular animal disease in production, trade, market access, food security and livelihoods of rural communities, or when designing or implementing an animal health strategy at national, regional or global level. This framework will provide a good communication tool between animal health technicians, veterinarians and economists in developing countries and will encourage a well informed collaboration between veterinarians, animal health experts, economists and social scientists for livestock and socio-economic development. Economic analysis should be an essential part of animal disease policies and disease management strategies.