Argentina’s poverty rate has skyrocketed to 52.9% in the first half of 2024, marking the highest level in two decades, according to the national statistics agency INDEC. This sharp increase, up from 41.7% in the second half of 2023, represents an additional 3.4 million Argentines falling into poverty since President Javier Milei took office in December.

The self-proclaimed “anarcho-capitalist” Milei has implemented drastic austerity measures to combat chronic inflation and eliminate the budget deficit. These measures include freezing pensions, reducing welfare programs, halting public works projects, and cutting subsidies for transport and energy.

While Milei’s policies have been welcomed by financial markets and the International Monetary Fund, to which Argentina owes $43 billion, they have taken a severe toll on the population. The government has laid off thousands of public sector employees, and purchasing power has eroded significantly.

Despite these challenges, Milei’s administration has achieved some economic goals. Monthly inflation has decreased from 25.5% in December to 4.0% in July, the lowest in 2.5 years. However, annual inflation remains one of the highest globally at 263.4%.

Government spokesperson Manuel Adorni defended the administration’s actions, stating that they inherited a “catastrophic situation” from previous leftist governments. He emphasized that fighting inflation is crucial to combating poverty.

Critics argue that Milei’s austerity measures disproportionately affect the poor and working classes. The extreme poverty rate has also increased significantly, rising to 18.1% from 11.9% in the latter half of 2023.

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