More than half of Argentina’s population, totaling 46 million, is now living in poverty, revealing a significant setback for President Javier Milei’s attempts to revive the struggling economy. According to the latest data from the national statistics agency, the poverty rate soared to 52.9% in the first half of this year, a stark increase from 41.7% in the latter half of 2023.
Since taking office in December, President Milei has implemented drastic measures, including major cuts to subsidies for transport, fuel, and energy, along with significant reductions in the public workforce, all aimed at lowering inflation and curtailing government spending. Argentina’s annual inflation rate hit over 230% in August, ranking among the highest globally.
Despite this, Milei’s administration has made strides in addressing government overspending, which has long been blamed for the nation’s economic difficulties. After years of deficits, Argentina has reported fiscal surpluses every month since February.
During a recent press briefing, a government spokesperson attributed the rising poverty levels to the economic policies of prior left-leaning administrations, describing the situation as a “consequence of the populism that has subjected Argentina to years of hardship.” The spokesperson claimed the current government faced an unprecedented economic situation upon taking office, likely one of the worst in democratic history.
Poverty was already escalating before Milei’s leadership; in 2017, only about 25% of the population was affected. Upon assuming the presidency, Milei promised radical reforms, including a 50% devaluation of the peso and a reduction in government ministries.
However, the president is encountering substantial opposition, particularly from labor unions, which have been vocal in their protests against his policies and their impact on workers’ rights. Compounding his challenges, Milei’s La Libertad Avanza coalition lacks a majority in Congress, making bipartisan agreements difficult.
Peronist lawmakers quickly criticized the poverty data, with one member denouncing the government’s “relentless austerity” measures that they claim are harming working families. Despite a drop in Milei’s personal approval ratings to 40% from August to September, his government still enjoys a moderate approval level of 53% among the populace, according to recent polling data.
