BUENOS AIRES (Reuters)

Irma Casal, a 53-year-old from Buenos Aires, juggles three jobs as a garbage recycler, cardboard collector, and bricklayer. Amid rising poverty, she struggles to make ends meet.

Argentina is set to release poverty data on Thursday, expected to reveal a soaring rate of over 50% during the first six months of libertarian President Javier Milei’s term. Milei has enacted strict austerity measures in a bid to reduce national debt.

“Since this government came to power, jobs have dropped. We work twice as hard for less, and we have to keep going,” said Casal, a resident of the low-income suburb Villa Fiorito, where she supports 14 children and 42 grandchildren.

The forthcoming official data for January to June will provide the first clear evidence of the poverty rise since Milei took office in December. Previously, the poverty rate was reported at 41.7% for the latter half of 2023.

Milei’s spending cuts have garnered applause from markets and investors for improving state finances after prolonged deficits, yet they have intensified the recession, although there are signs of economic stabilization.

The Catholic University of Argentina’s (UCA) observatory projects a poverty rate increase to 55.5% in the first quarter, easing to 49.4% in the second, averaging 52% for the first half of the year.

Agustin Salvia, UCA’s observatory director, noted a significant initial impact from Milei’s policies, including soup kitchen closures and cuts in government subsidies, but also pointed to recent improvements.

The government has expanded two welfare programs—the Universal Child Allowance and the Food Card—providing essential support for many families amid the challenging economic climate.