The poverty rate in Argentina has skyrocketed to 52.9% in the first half of 2024, according to the country’s statistics agency, INDEC. This abrupt increase, from the 40.1% recorded a year earlier, marks the highest level in two decades and highlights the severe impact of President Javier Milei’s austerity measures on the population. The increase in poverty has pushed 3.4 million more Argentines into poverty so far this year.
Since taking office in December 2023, Milei, a far-right libertarian, has implemented drastic budget cuts aimed at controlling Argentina’s chronic inflation and reducing its $43 billion debt to the International Monetary Fund (IMF). His policies include reducing public spending, reducing subsidies and freezing pensions, which has led to mass layoffs and a sharp drop in purchasing power.
Although these measures have been welcomed by international investors, inflation remains a major challenge, with annual rates still exceeding 230%. While monthly inflation has fallen from 25.5% in December to 4.2%, Argentina’s economy has contracted 3% this year, and concerns are growing about unemployment and rising poverty.
Despite Milei’s popularity, public discontent is on the rise as the middle class faces increasing pressure, and the extreme poverty rate has also risen to 18.1%, further aggravating the country’s economic crisis. country. Although Milei remains committed to his tax reforms, many wonder whether the economic adjustment will lead to a long-term recovery or further social unrest.
