Argentina’s poverty rate dropped sharply in the second half of 2024, marking an important milestone in economic reforms by President Javier Milei, according to official data released this week.
According to data from the country’s official bureau of statistics, the National Bureau of Statistics and the Institute of Census (INDEC), the poverty rate fell to 38.1% between July 2024 and December 2024, down nearly 15 percentage points from the first half of the year. Family poverty also fell by 13.9 percentage points to 28.6%. Extreme poverty has been cut More than halfDecline from 18.1% to 8.2%.
It was a major shift from the start of the Mileys as president. When he took office in December 2023, he inherited a poverty rate of 41.7%. 53% When his government launched a “Shock Therapy” program to eliminate economic pain in Argentina.
One of the biggest drivers of the decline in poverty is a sharp decline in inflation. Annual inflation rate reached 276.2% a year ago (the highest in the world)It fell to 66.9% last month. Monthly inflation also fell from 25.5% in December to 2.4% in March.
“These figures reflect the failure of past policies that have put millions of Argentines into unstable conditions while promoting the idea of helping the poor, even as poverty continues to increase,” Milli’s office explain In a statement after INDEC report is issued. “The current government shows that the path to economic freedom and fiscal responsibility is a way to reduce poverty in the long run.”
In other words, Miley’s bet on free market reform began to pay off.
It’s worth remembering what he walked in. “Melley inherits a country suffering from 200% inflation in 2023, with 40% poverty, fiscal and quasi-fiscal deficits accounting for 15% of GDP, huge and growing public debt, bankrupt central banks and growing economies,” he said. Ian Vásquez of Kato College.
In response, Milli promised a fundamental change in Argentina’s economic model. His government cut government spending, removed price controls, devalued peso, cut subsidies, suspended public works and laid off thousands of government workers. These changes are not popular, but they are necessary. Now, the numbers are catching up.
The economy grew again. gross domestic product growing up In the last two quarters. The gap between the black market dollar and official interest rates narrowed. Rents have fallen, and housing supply has increased since then Rent control method Cancelled. Meanwhile, investors’ interest in Argentina begins to return, and the International Monetary Fund (IMF) is in conversation with the Mili government on a new plan. IMF projection Grow 5% Argentina in 2025.
