Argentina’s Poverty Rate Exceeds 50% Amid Milei’s Austerity Measures, Reports Reuters

BUENOS AIRES (Reuters) – Argentina’s poverty rate has surged to nearly 53% in the first half of the year, according to official data released on Thursday. This is the first concrete indication of the considerable toll that libertarian President Javier Milei’s stringent austerity measures have taken on the population.

This figure represents a significant increase from 41.7% at the end of the previous year and more than double the 26% recorded seven years ago, highlighting the severe consequences of ongoing economic crises that have beleaguered the South American country.

The data illustrates how Milei’s spending reductions, implemented to tackle a serious fiscal deficit, have resulted in significant short-term hardship. The nation is currently experiencing a substantial recession, with inflation rates remaining in the triple digits, though there are emerging signs of improvement.

“Since this government assumed power, jobs have been lost,” remarked Irma Casal, a 53-year-old resident of Buenos Aires who juggles multiple jobs as a garbage recycler, cardboard collector, and bricklayer, yet still struggles to make ends meet. “We work twice as hard for less and we must keep pushing forward.”

Markets and investors have welcomed Milei’s budget cuts for helping remedy the state’s finances after years of deficit spending, yet these measures have driven the country into a recession, even as signs suggest that the economy may be beginning to stabilize.

The University of Argentina’s observatory had predicted that the poverty rate climbed to 55.5% in the first quarter of this year before decreasing to 49.4% in the second quarter, leading to an average of 52% for the first six months.

"ANY LEVEL OF POVERTY IS HORRENDOUS"

Agustin Salvia, director of the observatory, noted a considerable impact from Milei’s policies at the year’s outset, but also indicated that recent developments have shown signs of improvement. “Looking at the overall situation, we saw a deterioration in the first quarter, but that has started to ease,” he explained.

The Argentine government has cut various welfare programs and reduced support for soup kitchens but argues that it has also increased funding for two essential welfare initiatives: the Universal Child Allowance and a Food Card program, which provide direct assistance to families.

"Any level of poverty is horrific," stated presidential spokesman Manuel Adorni during a press conference on Thursday, attributing the situation to mismanagement by previous administrations that left economic "bombs" for Milei to defuse. “We are doing everything possible to change this situation.”