Argentina's Poverty Rate Hits 53% in Early 2024 Amid Milei's Austerity Drive

Argentina's poverty rate surged to 53% in H1 2024 as Milei's austerity measures worsen economic hardship. Official data shows sharp rise from 41.7%.

Sharp Rise in Poverty Under Austerity

Official figures released Thursday show Argentina's poverty rate jumped to nearly 53% in the first half of 2024, a steep increase from 41.7% at end-2023 and more than double the 26% recorded seven years ago. The data provides the first clear evidence of the severe toll President Javier Milei's austerity measures are taking on the population, pushing millions deeper into hardship.

Human Cost of Spending Cuts

Milei's policies—aimed at slashing a massive fiscal deficit—have triggered a recession and left inflation running at triple digits. While financial markets applaud the stabilization of public finances, ordinary Argentines bear the brunt. Irma Casal, 53, a Buenos Aires resident working three jobs as a garbage recycler, cardboard collector, and bricklayer, told reporters: "Since this government came to power, jobs have dropped away. We work twice as hard for less."

Government Response and Adjustments

The administration has trimmed welfare programs and reduced support for soup kitchens, yet expanded the Universal Child Allowance and a Food Card program. Presidential spokesman Manuel Adorni called the poverty levels "horrendous" but blamed previous governments for leaving economic "bombs" that Milei is now defusing. "We are doing everything so that this situation changes," he said.

Data from the Catholic University of Argentina (UCA) shows the poverty rate peaked at 55.5% in the first quarter of 2024 before easing to 49.4% in the second quarter, averaging 52% for the half. UCA director Agustin Salvia noted initial deterioration but pointed to emerging signs of improvement.

Broader Economic Challenges

Argentina's economy continues to grapple with high inflation, a deep fiscal deficit, and substantial debt, compounded by global uncertainty. The austerity package—including cuts to public spending, subsidies, and tax reforms—is designed to secure international backing and long-term stability, but it exacts a heavy toll on the most vulnerable. The path forward remains fraught with tension between fiscal discipline and social welfare.