Argentina’s Poverty Rate Drops to 38.1% in Second Half of 2024 Amid Economic Reform

Argentina has achieved a striking reduction in its poverty rate, which fell to 38.1% in the second half of 2024 from a staggering 52.9% in the first half of the year.

This represents a 14.8 percentage point drop, the sharpest decline in decades, according to data released by the National Institute of Statistics and Census (INDEC).

The improvement marks the lowest poverty rate since the second half of 2022 and signals a significant turnaround under President Javier Milei’s administration. The dramatic decrease follows the implementation of sweeping economic reforms aimed at stabilizing Argentina’s long-troubled economy.

Inflation, which had reached an annualized rate of 289% in early 2024, plummeted to 66.9% by the end of the year. Monthly inflation rates dropped from 25.5% in December 2023 to just 2.4% by February 2025, providing much-needed relief to households across the country.

Milei’s policies, including aggressive fiscal austerity measures, deregulation of key sectors, and a focus on reducing public spending, played a central role in this transformation.

Despite initial economic pain—marked by job losses and increased costs for utilities and basic services—the reforms have begun to yield tangible results.

Real wages have outpaced inflation since April 2024, and household incomes rose by an average of 64.5% during the second half of the year. The number of Argentines living in extreme poverty also fell significantly.

Argentina’s Poverty Reduction

Indigence rates dropped from 18.1% to 8.2%, meaning roughly 2.5 million people escaped conditions where they could not afford basic food necessities. This improvement reflects not only falling inflation but also targeted increases in social assistance programs such as child allowances and food subsidies.

While these figures highlight a remarkable achievement, challenges persist. Nearly four out of ten Argentines remain below the poverty line, with children disproportionately affected—over half of those aged 0-14 still live in poverty.

Regional disparities also remain stark; urban areas like Gran Resistencia report poverty rates exceeding 60%. Milei has framed this progress as validation of his libertarian economic agenda, which emphasizes fiscal discipline and market liberalization.

“We inherited a monthly poverty rate of 57%, and today it stands at 36%,” Milei recently stated, crediting his administration’s policies for reversing years of economic mismanagement.

The reforms have also bolstered Argentina’s fiscal position, delivering its first annual budget surplus in over a decade despite a modest economic contraction of 1.8%. However, critics warn that the gains may not be sustainable without addressing structural inequalities and ensuring broader economic growth.

More: Argentina news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error