Argentina’s poverty rate has soared to 52.9% in the first half of 2024, according to the country’s statistics agency, INDEC. This sharp rise, up from 40.1% 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 poverty rate increase has pushed 3.4 million more Argentinians into poverty within the 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 slashing public spending, reducing subsidies, and freezing pensions, leading to mass job losses and a sharp decline in purchasing power.
Although these measures have been welcomed by international investors, inflation remains a significant challenge, with annual rates still exceeding 230%. While monthly inflation has dropped from 25.5% in December to 4.2%, Argentina’s economy has contracted by 3% this year, and concerns over unemployment and rising poverty are growing.
Despite Milei’s popularity, public discontent is mounting as the middle class faces increasing pressure, and the extreme poverty rate has also surged to 18.1%, further exacerbating the country’s economic crisis. While Milei remains committed to his fiscal reforms, many are questioning whether the belt-tightening will lead to long-term recovery or deeper social unrest.
