The stabilization of the between 2% and 3% monthly, together with the partial salary recovery of some sectors of the economy, caused a strong reduction in poverty, which. The official data revealed on Monday indicate that in Argentina 38.1% of the population is poor: the figure represents a drop in 14.8 percentage points compared to the previous measurement, of 52.9%. “Take note, mandriles,” Milei celebrated on his social networks and spread a statement from the Casa Rosada celebrating the result of “the deep economic reforms promoted by the president.”
The data prepared by the National Institute of Statistics and Census (INDEC) correspond to the second semester of 2024 and arise from the permanent household survey, which covers 29.8 million people residing in urban agglomerates – in total, the country has about 47 million inhabitants. The report details that 38.1% poverty includes 11.3 million people. The destitution – that is, those who do not have income to cover their food needs – reaches 8.2%, about 2.5 million people.
The most affected population sector is that of children under 14: 51.9% of children are poor and 11.5%, homeless. Social inequality is also geographical, since in the Northeast and the Argentine Northwest the poverty rate reaches 47 and 42.8%, respectively. On the other hand, in the Patagonian region, in the south of the country, it falls below the national average, to 33.5%.
The ultra government celebrated the new data for its contrast to those registered in the first half of 2024. At that time the impact of the initial measures of Milei had occurred. The deep fiscal adjustment, the abrupt devaluation of the national currency, the deregulation of the economy and the strong increase of rates, among other things, had fired from 2023 and 20.6% more in the following January, leaving the income far behind. As a consequence, the INDEC verified that poverty had climbed from 41.7% in December 2023 – when Milei assumed – to 52.9% in mid -2024. In the same period, the destitution had risen from 11.9 to 18.1%.
The statement released on Monday by Casa Rosada held the government of Alberto Fernández and Cristina Kirchner (2019-2023) for “The unprecedented poverty” achieved in the middle of last year. Then he attributed the current one to “the fight against inflation that the president has carried out”, as well as “macroeconomic stability and the elimination of restrictions that for years limited the economic potential of Argentines.”
In addition to excluding the non -urban population and not taking into account expenses such as housing rental or access to education and health, the measurement of poverty and destitution made by INDEC, they check the income of people with the price of food and some basic services, so it is deeply affected by the inflation rate and the evolution of wages and retirements.
Experts warn that this methodology increases their margin of error when there are sudden changes in price indices, as is happening in Argentina. “It is possible that in the measurement of INDEC, the rise in the early 2024 has been exaggerated, as well as the decrease in the second semester will be exaggerated,” said the new data, the economist, researcher at the Center for Distributive, Labor and Social Studies of the University of La Plata.
The Argentine Political Economy Center (CEPA) pointed out the incidence of another aspect: “The use of exchange appreciation as a tool to contain inflation allowed a temporary reduction of poverty. However, its sustainability is conditioned to the stability of the exchange rate. If the pressure on the dollar increases and the government is forced to devalue, the prices – especially those of food – could firing, deteriorating the purchasing power and reversing the purchasing power and reversing advances in the reduction of poverty and destitution. ”
The administration of Milei to expect to close as soon as possible that implies the entry of currencies and allows the markets to be quiet. For two weeks, financial operators act by being discounted that there will be modifications in the exchange rate regime and that this will imply a new devaluation.
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