Rising Poverty in Argentina: Highest Levels Since 2002

In the first three months of the year, Argentina’s poverty rate hit an alarming 55%, the highest since 2002.

This was reported by the Universidad Católica Argentina’s Social Debt Observatory (ODSA-UCA). Indigence also rose to 18%, reflecting severe economic distress.

Agustín Salvia of ODSA-UCA notes that this spike was primarily fueled by a significant price shock following currency devaluation, which sharply lowered real incomes at the start of the year.

Although there was a brief improvement in poverty rates due to wage increases and enhanced social programs, the rate plateaued at approximately 54% to 55%.

The informal sector, comprising small business owners and freelancers, bears the brunt of the impact.

Many have slipped into indigence due to reduced work opportunities and incomes amidst the recession.

Salvia warns that future economic downturns, like increased unemployment from small business closures, could push poverty and indigence rates even higher.

Additional studies from the Universidad Nacional de General Sarmiento and the Universidad Torcuato Di Tella suggest a persistent and possibly worsening poverty scenario.

The former recorded a slightly higher poverty rate of 56%. The latest Nowcast shows 49% of urban households in poverty from November to April, with a steady increase.

This dire economic landscape underscores the urgent need for effective policy interventions aimed at economic stabilization and poverty alleviation.

The government is preparing for a 60% poverty rate this quarter, urging collaborative action to reverse the trend. It also requires offering substantial support to those in need.