Report: Argentina's Poverty Rate Rises to 52.9%

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Facts

  • According to government data published Thursday, Argentina's poverty rate has increased from 41.7% in the second half of 2023 to 52.9% in the first half of 2024.[1]
  • About 15.7M Argentinians now live below the poverty line. This comes as Pres. Javier Milei has implemented stringent austerity measures since December intended to address inflation and the nation's budget deficit.[2]
  • In the last two months alone, fuel prices have more than doubled in Argentina, while bus and train fares have increased by 251% and 169%, respectively. The minimum wage currently sits at AR$156K ($161) per month.[3]
  • The country is in a deep recession, with annual inflation levels at over 230%. However, Argentina's monthly inflation has fallen from 25.5% last December to 4.2% recently.[4]
  • Argentina's government has cut public spending, including reducing funds to community kitchens, while expanding two key welfare programs — the Universal Child Allowance and a Food Card program.[4][5][6]
  • Since Dec. 2023, when Milei took office, Argentina's economy has lost at least 136K formal jobs. However, the government aims to create a fiscal surplus of over 1.3% of the country's annual GDP.[7][8]

Sources: [1]Buenos Aires Times, [2]France 24, [3]Buenosairesherald, [4]Associated Press, [5]Al Jazeera, [6]Investing.com, [7]Ft and [8]Washington Post.

Narratives

  • Narrative A, as provided by Newsweek. Due to Pres. Milei's radical reforms Argentina's economic woes have only intensified. The self-proclaimed anti-establishment, anarcho-capitalist president's drastic measures, aimed at slashing welfare and provincial funding, have exacerbated the country's dire financial situation. His aggressive approach and polarizing rhetoric have hampered his ability to implement meaningful change. Ultimately, the people of Argentina are left grappling with an increasingly bleak economic landscape.
  • Narrative B, as provided by Eurasiareview. Pres. Milei has tackled Argentina's economic woes head-on, implementing shock therapy reforms to slash government spending and reduce inflation. Despite skepticism and dire predictions, Argentina's economy has shown surprising growth, with a 2.3% year-over-year increase in gross domestic product and a cooling inflation rate. While critics feared deep recession and economic pain, early indicators suggest Milei's aggressive cuts might be yielding results.

Predictions