The poverty rate in Argentina rose dramatically to nearly 53% in the first half of the year, indicating the harsh impact of President Javier Milei’s austerity measures. This is a significant increase from 41.7% at the end of the previous year and more than double the rate from seven years prior. The repeated economic crises that have plagued Argentina have taken a toll on its citizens, with Milei’s spending cuts causing short-term pain despite attempts to overturn a deep fiscal deficit. The country is currently in a deep recession with high inflation, although there are some signs of improvement.
The impact of Milei’s policies is reflected in the struggles of regular Argentines like Irma Casal, a 53-year-old who works multiple jobs but still finds it difficult to make ends meet. The government’s spending cuts have been praised by markets and investors for stabilizing the state’s finances after years of deficits, but this has also contributed to pushing the country into recession. Despite recent signs that the economy might be starting to stabilize, the consequences of these measures are evident in the rising poverty rate.
The Catholic University of Argentina’s observatory estimated that the poverty rate peaked at 55.5% in the first quarter before decreasing to 49.4% in the second quarter, resulting in an average of 52% for the first half of the year. Agustin Salvia, the director of the UCA’s Observatory, acknowledged the initial impact of Milei’s policies but noted signs of improvement more recently. The government has made efforts to expand key welfare programs such as the Universal Child Allowance and a Food Card program to provide direct support to families in need.
In response to the rising poverty rates, presidential spokesperson Manuel Adorni emphasized the government’s efforts to address the situation that was exacerbated by mismanagement in the past. He highlighted the challenges left by previous administrations that President Milei is now trying to overcome. While the current level of poverty is concerning, the government is committed to implementing measures to alleviate the situation and bring about positive change for all Argentines. The continued focus on welfare programs and support for those most affected by the economic crisis is crucial to improving the overall well-being of the population.
