Argentina’s Poverty Rate Soars to over 50% in H1

Argentina’s poverty rate jumped to 52.9 percent in the first half of this year from 41.7 percent in the second half of 2023, official data released Thursday showed, reflecting the painful impact inflicted on the people by President Javier Milei’s austerity measures.

Unlike past populist governments that maintained high consumer spending at the expense of huge budget deficits, the Milei government eliminated price controls and slashed welfare programs as soon as it came to power in an effort to rein in inflation that has been running at more than 200% per year. The austerity policies have been welcomed by markets and investors, but have caused the people’s spending power to shrink dramatically and the country’s economy to sink deeper into recession.