BUENOS AIRES (Reuters) -Argentina’s poverty rate soared to almost 53% in the first half of the year, official data released on Thursday showed, the first hard evidence of the painful impact of libertarian President Javier Milei’s tough austerity measures. Furthermore, the Argentina poverty rate reflects deeper social issues that require urgent attention. #ArgentinaPovertyRate
The poverty rate jumped to 53%, a steep increase from 41.7% at last year’s end. This figure is more than double the 26% reported seven years ago. Such statistics underscore the severe impact of repeated economic crises on regular Argentines.
The data underscores how Milei’s spending cuts, aimed at overturning a deep fiscal deficit, have caused major short-term pain. The country is in a deep recession and inflation remains in triple digits, though there are signs things are improving.
“Since this government came to power, jobs have dropped away,” said Irma Casal, a 53-year-old in Buenos Aires, who works three shifts as a garbage recycler, cardboard collector and bricklayer, but still struggles to stay afloat.
“We work twice as hard for less and we have to keep going.”
Milei’s spending cuts have been cheered by markets and investors for helping right the state’s finances after years of deficits, but have pushed the country into a recession, despite signs the economy could now be bottoming out.
The Catholic University of Argentina’s (UCA) observatory had estimated the poverty rate soared to 55.5% in the first quarter of the year before easing to 49.4% in the second quarter, giving a 52% average for the first six months of this year.
Agustin Salvia, director of the UCA’s Observatory, said that there was a significant impact at the start of the year from Milei’s policies. However, there had been signs of an improvement recently, he added.
“If you look at the whole story, it shows a deterioration in the first quarter. That situation has since started to ease,” he said.
Key Reforms Needed to Combat Poverty in Argentina
Additionally, addressing the Argentina poverty rate will necessitate comprehensive policy changes. Lawmakers must prioritize economic reforms that foster job creation and stabilize prices. Ultimately, effective measures will be crucial for improving living conditions and reducing poverty across the nation. #ArgentinaPovertyRate
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