Argentina’s Urban Poverty Falls to 31.6% in First Half of 2025, Narrows Gap with Brazil

According to Argentina’s National Institute of Statistics and Censuses (INDEC), urban poverty fell to 31.6 percent in the first half of 2025. This drop marks a historic seven-year low and edges Argentina closer to Brazil’s 27.4 percent national poverty rate.

Household incomes rose 26.3 percent on average, outpacing the 12.3 percent rise in the overall basic basket and the 13.2 percent cost jump for food alone. As a result, families regained buying power after years of crisis.

Extreme poverty, which measures the share of people unable to afford a basic food basket, declined to 6.9 percent. This figure contrasts sharply with nearly 14 percent in mid-2024, showing that fewer households suffer absolute hunger.

Child poverty stays high, with 45.4 percent of children under 14 in poor households. This rate highlights that gains still bypass vulnerable young Argentines. Young adults and middle-aged workers saw poverty rates of 37.0 percent and 27.7 percent, respectively.

Regions show varied progress. The Northeast remains the hardest hit, with 39.0 percent urban poverty. Cuyo follows at 33.8 percent, while Patagonia reports 27.0 percent. These gaps reflect uneven growth and living cost differences across provinces.

Inflation cooling played a key role. Monthly inflation slowed below 2 percent in early 2025 after peaking above 200 percent in 2023. Tighter monetary measures curbed price surges. At the same time, targeted cash transfers boosted household spending.

Currency stability also helped. The peso avoided sharp devaluations, containing import-driven price shocks. Stable exchange rates eased pressure on food and energy costs that most affect low-income families.

This progress matters for investors and policymakers. Lower poverty can boost consumer demand and political stability. It also shapes risk assessments for businesses operating in South America.

However, Argentina still lags behind Brazil’s poverty level. Brazil’s 27.4 percent poverty rate in 2023 represented its lowest rate since 2012, according to the Brazilian Institute of Geography and Statistics (IBGE).

Argentina’s rapid improvement streak positions it to catch up soon. This story signals hope but also warns that one in three urban Argentines remains poor.

The data underscore the need for continued policies to support children and lagging regions. In turn, these measures can ensure that falling poverty translates into lasting social gains.

Argentina’s narrowing poverty gap with Brazil offers a vital case study in balancing inflation control, income support, and monetary stability.

It shows how thoughtful economic measures can lift millions from hardship—and how much work remains to secure broad-based recovery.