Argentina Poverty Hits 32% Under Milei, More Pain Expected

Argentina's poverty rate reached 32% in the first half of 2026, marking a significant increase of 4.1 percentage points compared to the previous period, according to data released by the Argentine Catholic University's Social Debt Observatory. This surge in poverty is attributed to the economic policies implemented by President Javier Milei's administration, which have led to a sharp devaluation of the peso and soaring inflation. The observatory's report, published on July 15, 2026, indicates that the number of impoverished individuals now stands at approximately 13.5 million people, based on a national population of over 46 million. The data further reveals that 7.5% of the population, or roughly 3.2 million people, are living in extreme poverty, meaning they cannot afford a basic food basket. These figures represent a stark deterioration in living standards for a substantial portion of the Argentine population since Milei took office in December 2023. Analysts suggest that the austerity measures, including deep cuts to public spending and deregulation, while aimed at stabilizing the economy in the long term, have imposed immediate and severe burdens on households. The report highlights that the rise in poverty is particularly acute in urban areas, where the cost of living has escalated dramatically. The government's stated goal is to curb inflation, which has been among the highest in the world, and to attract foreign investment. However, the immediate consequence has been a contraction in economic activity and a decline in real wages, making it harder for families to meet their basic needs. The Social Debt Observatory's findings are based on surveys conducted in 31 major urban centers across Argentina. The methodology considers income levels relative to the cost of essential goods and services, including food, housing, transportation, and healthcare. The projected outlook for the remainder of 2026 suggests that poverty levels may continue to rise or remain elevated, as the full impact of the economic reforms is yet to be realized and global economic uncertainties persist. This trend could pose a significant challenge to President Milei's political standing and his re-election prospects in the upcoming electoral cycle. The report did not provide specific projections for the second half of 2026 but indicated that the current economic trajectory points towards sustained hardship for vulnerable populations. The government has acknowledged the difficult economic situation and has stated its commitment to implementing social programs to mitigate the impact on the poorest segments of society, though details on the scale and effectiveness of these programs remain under scrutiny. The rise in poverty is a critical indicator of the social cost of the economic adjustments being undertaken by the Milei administration, which has promised a radical overhaul of Argentina's economic model.