Poverty increases in legendary manner in Argentina
Date
2/21/2024 6:14:04 AM
(MENAFN) A recent report from the Social Debt Observatory of the Catholic University of Argentina (UCA) has sent shockwaves through the nation, revealing that poverty levels have reached a multi-year high in January. The surge, attributed to the sweeping economic reforms enacted by President Javier Milei, marks a significant and alarming shift in the country's socio-economic landscape.
According to the UCA's data, the share of people living in poverty in Argentina soared to a staggering 57.4 percent last month. This represents the highest level since 2004, a sharp increase from the 44.7 percent reported in the third quarter of 2023, just prior to Milei taking office. The president's ambitious economic agenda, characterized by what he termed 'shock therapy' reforms, has triggered a cascade of consequences affecting the nation's struggling economy.
Milei's measures include a 50 percent devaluation of the peso against the United States dollar and a remarkable hike in the key interest rate to 133 percent. These steps, designed to stabilize Argentina's economic woes, have resulted in a significant surge in consumer prices. Official data released earlier this month revealed that annual inflation in Argentina reached a three-decade high of 254 percent in January. The repercussions of this inflationary spiral have led to collapsing household incomes and a stark reduction in consumer purchasing power, exacerbating poverty levels across the nation.
The report highlights that the most substantial increase in poverty occurred among middle-class households that were not beneficiaries of social programs, as well as low-skilled workers. Disturbingly, the percentage of Argentinians considered "destitute" surged to 15 percent in January, a substantial rise from 9.6 percent in the third quarter of the previous year.
Agustin Salvia, the head of the UCA's Social Debt Observatory, expressed concern in an interview with La Nacion news outlet. While he doesn't anticipate further significant growth in poverty levels, he warned that the situation is likely to worsen before any signs of improvement emerge. The challenges posed by the current economic landscape are raising pressing questions about the sustainability and effectiveness of the government's reforms, as Argentina grapples with the profound impact on its citizens' livelihoods.
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