Milei Administration Faces Challenges As Poverty Rate Hits 52.9%

(MENAFN- The Rio Times) Argentina's poverty rate has risen to 52.9% of the population in the first half of 2024, with 24.9 million people living below the poverty line.

This represents an 11.2-point increase from the previous measurement in the second half of 2023, when the poverty rate was 41.7%. The indigence rate has also risen to 18.1%, up 6.2 points from December 2023.

The National Institute of Statistics and Census (Indec) reported that this is the highest poverty rate since the first half of 2003, when it reached 54% of the population. The poverty rate among households has also increased to 42.7%.

Analysts attribute the surge in poverty to the inflationary shock at the beginning of the year, the lack of recovery in purchasing power, the elimination of social programs, and job losses.

The inflation rate had accumulated a 79.8% increase by June 2024, with the majority of the increase occurring in the first months of the year. However, some analysts believe that the worst may be over.



Leopoldo Tornarolli, an economist at CEDLAS, noted that there was an improvement between the first and second quarters of 2024, with a 4-point decrease in poverty rates.

Lorenzo Sigaut Gravina, director of Macroeconomic Analysis at Equilibra, also stated that the poverty rate decreased in the second quarter compared to the first.

The Minister of Economy, Luis Caputo, defended the government's economic plan, stating that it prevented the poverty rate from reaching even higher levels.

"This is proof that it's not an exaggeration when President Javier Milei says that if we hadn't avoided the catastrophe that many predicted, poverty would have reached levels of 80 or 90%," he said.

Despite the challenges, there are signs of improvement. The poverty rate decreased in the second quarter, and the inflation rate has slowed down.

However, the situation remains critical, with over 24 million people living below the poverty line and over 8 million people living in extreme poverty.
Key Figures

• Poverty rate: 52.9% of the population
  
• Indigence rate: 18.1% of the population
  
• Number of people living below the poverty line: 24.9 million
  
• Number of people living in extreme poverty: 8 million
  
• Inflation rate: 79.8% increase by June 2024
  

Expert Opinions

• Leopoldo Tornaroll i, economist at CEDLAS: "There was an improvement between the first and second quarters of 2024, with a 4-point decrease in poverty rates."
  
• Lorenzo Sigaut Gravina , director of Macroeconomic Analysis at Equilibra: "The poverty rate decreased in the second quarter compared to the first."
  
• Luis Caputo , Minister of Economy: "The government's economic plan prevented the poverty rate from reaching even higher levels."
  

MENAFN27092024007421016031ID1108722097