Poverty Rate in Argentina Surges Amid Austerity Measures

BUENOS AIRES (Reuters) – Argentina’s poverty rate soared to almost 53% in the first half of the year, according to official data released on Thursday. This marks a significant jump from 41.7% at the end of last year and more than double the 26% recorded seven years ago, highlighting the severe impact of economic crises on the population.

The data reveals the painful short-term effects of libertarian President Javier Milei’s austerity measures, which are designed to address a deep fiscal deficit. The country remains in a recession with triple-digit inflation, although some signs of improvement are emerging.

Irma Casal, a 53-year-old from Buenos Aires, shared her struggles: “Since this government came to power, jobs have dropped away. We work twice as hard for less and we have to keep going.”

Milei’s spending cuts have been welcomed by markets and investors, yet they have plunged the country into a recession. The Catholic University of Argentina’s (UCA) observatory reported that the poverty rate peaked at 55.5% in the first quarter before easing to 49.4% in the second quarter, averaging 52% for the first six months of the year.

Agustin Salvia, director of UCA’s Observatory, noted a significant impact from Milei’s policies at the start of the year but indicated some recent improvement. The government has cut certain welfare programs while expanding others, such as the Universal Child Allowance and Food Card program, which support families.

Presidential spokesman Manuel Adorni stated, “Any level of poverty is horrendous,” attributing the current situation to the mismanagement of past administrations while emphasizing the government’s commitment to change.