Figures released this Thursday by the National Institute of Statistics and Census (Insec) in Argentina showed that 52.9% of people living in the country’s 31 largest cities were in poverty during the first half of 2024.
Dizzying figures which demonstrate the extent of the economic crisis in Argentina. The National Institute of Statistics and Census (Insec), a government agency reporting directly to the Ministry of Economy, relayed worrying data concerning the poverty rate in Argentina in a report on Thursday.
The latter is located at 52.9% for the first half of 2024 by analyzing the results collected in the 31 most populous cities in the country. However, such a figure had not been reached for two decades, the date of the last major economic crisis shaking Argentina.
For comparison, this represents 3.4 million additional Argentines who fell into poverty this year compared to the previous one.
“This new economic program does not protect the poor”
Elected last December to the presidency of Argentina, Javier Milei has since led a large-scale economic austerity policy in the country in order to drastically reduce inflation and debt. He also campaigned with a chainsaw in his hand to symbolize the budget cuts he planned, particularly in public spending.
Once in power, Javier Milei undertook a series of measures directly impacting the most disadvantaged people. His actions included freezing pensions, reducing support for soup kitchens, eliminating welfare programs, and halting all public works projects. Around ten thousand civil servants were also laid off.
The reduction in subsidies granted to energy and transport has increased costs, also directly impacting the purchasing power of Argentines. “This new economic program does not protect the poor. The jump is absolutely terrible,” summarized Kirsten Sehnbruch, a Latin America specialist at the London School of Economics and Political Science, for The Guardian.
A policy of lowering inflation that pleases the IMF
The economic policy carried out by Javier Milei has been praised by the markets, investors and the International Monetary Fund, to which Argentina owes 43 billion dollars, or 38.5 billion euros.
Note that monthly inflation has gradually declined since Javier Milei took power, going from nearly 26% in December to around 4% in June. Annual inflation in Argentina is nevertheless one of the highest in the world, with a rate exceeding 230%.
“The question is whether this belt tightening will be beneficial. What will happen next? Can it really control public sector spending? Can it support the currency? Without this, we only create poverty,” underlined Christopher Sabatini, senior researcher for Latin America at Chatham House, for the British newspaper.
Javier Milei’s popularity in Argentina drops 15% in September
To defend itself against this criticized economic record, the presidential spokesperson declared that the government had “inherited a disastrous situation” from previous left-wing governments. “They left us a country where almost all of the inhabitants are poor. The level of poverty is appalling. We are doing everything, everything to change this situation,” said Manuel Adorni.
Long placed high in the polls, Javier Milei gradually saw his popularity crumble, to the point of losing 15% of favorable opinions in September according to a survey published this Monday. According to recent polls, fears about inflation have been supplanted by fears about job loss and poverty.
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