Milei's government increased poverty in Argentina by 13 points in two months

Published at: 18/02/2024 08:44 PM

The Social Observatory of the Catholic University of Argentina carried out an analysis, which indicates that nearly 27 million people are poor in the southern nation and places the causes of the growth in the devaluation and the inflationary surge, which the government of Javier Milei carried out in just two months.

With these figures, the poverty level would have reached 57.4%, up from 44.7% achieved in the third quarter of 2023, according to the same study by the Argentine university, the Telesur website reported.

It should be noted that the depreciation of the currency and the unrestrained escalation of the prices of basic products influenced the abrupt decline in the purchasing power of the middle sectors, which rapidly increased the poverty figures in Argentina.

In the first two months of Javier Milei's administration, there was such a drop in purchasing power that millions of people fell into poverty.

In this scenario, the UCA Social Observatory projects that the population in a situation of destitution increased from 9.6% in the third quarter of 2023 to 14.2% in December 2023 and to 15% in January 2024.

And the poverty level rose from 44.7% observed in the third quarter of 2023 to 49.5% in December and 57.4% in January.

The data are included in the Report "Estimating the Effects of the Post-Devaluation Inflationary Impact. Scenario for December 2023 and January 2024.” 57.4% is the highest level in the series started in 2004, when it was 54%.

He points out that projected to cover the entire country there would be almost 27 million poor people, of whom 7 million would be indigent.

However, until now there has been no update to the minimum wage or unemployment benefit, there have been wage increases in very few unions and the decline in economic activity has worsened, with a decline in employment levels.

On the other hand, there were increases in passenger transport fares and meat prices rose again.

The latest official INDEC figure, corresponding to the first half of 2023, showed 40.1% of poverty. The December situation will only be announced on March 27.

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Mazo News Team