Argentina's poverty rate significantly surges past 50%, bearing the brunt of the administration's austerity measures.
Argentina's poverty rate skyrocketed nearly to 53% during the first half of the year, according to recent data, highlighting the harsh effects of President Javier Milei's strict austerity measures. This represented a substantial increase from 41.7% at the end of last year and more than doubled the 26% reported seven years prior, demonstrating the significant financial toll repeated economic crises have taken on Argentine citizens.
The data underscored the immediate pain caused by Milei's budget cuts, which were aimed at addressing a deep fiscal deficit. Argentina is currently in an economic downturn and inflation remains in the hundreds, although there have been indications of improvement.
"Since this administration took office, jobs have disappeared," stated Irma Casal, a 53-year-old resident of Buenos Aires, who works multiple jobs as a trash recycler, cardboard collector, and bricklayer, yet continues to struggle financially. "We work twice as hard for less, and we have to keep going."
Milei's austerity measures have been celebrated by financial markets and investors for improving the state's fiscal health after years of deficits, but they've also caused the country to enter a recession, despite hints that the economy might be recovering.
The Catholic University of Argentina's (UCA) observatory predicted that the poverty rate surged to 55.5% in the first quarter of the year, then dropped to 49.4% in the second quarter, resulting in an average of 52% poverty rate in the first half of this year.
"Any level of poverty is awful"
Agustin Salvia, director of UCA's Observatory, acknowledged that there was a noticeable impact at the start of the year due to Milei's policies. However, he mentioned improvements in recent months.
"If you look at the bigger picture, it reveals a decline in the first quarter. This unfavorable situation has since begun to improve," he said.
Argentina's government has terminated some welfare programs and reduced aid to soup kitchens, but maintains it has also expanded two significant welfare programs, the Universal Child Allowance and the Food Card program, directly assisting families.
"Any level of poverty is awful," said presidential spokesman Manuel Adorni during a press briefing on Thursday, blaming former administrations for leaving behind economic "explosives" that Milei is now trying to disarm.
"We are doing everything, everything to alter this situation."
The austerity measures implemented by President Milei aimed to improve Argentina's fiscal health, but they've also led to the closure of businesses due to economic hardship. The government's termination of welfare programs and reduction of aid to soup kitchens have further strained local business owners, as they rely on these services to support their families.
