Argentina's poverty reaches 20-year peak during economic crisis, UCA study says

A recent study conducted by the Catholic University of Argentina (UCA) has revealed alarming statistics, indicating that poverty levels in Argentina have surged to 57.4 per cent, marking the highest recorded figure in at least two decades.

The report, cited by local media outlets, underscores the economic challenges faced by the South American nation, exacerbated by currency devaluation and subsequent price hikes.

"The true inheritance of the caste model: Six out of every 10 Argentines are poor," remarked President Javier Milei, a libertarian figure, expressing dismay over the grim reality highlighted in the report.

Milei's comments reflect growing discontent among Argentinians grappling with economic hardships and disillusionment with traditional political structures.

President Milei, who assumed office with promises of radical economic reforms, initiated sweeping changes aimed at stabilising the economy, curbing hyperinflation, and addressing fiscal deficits.

However, the implementation of policies including a 54 per cent peso devaluation against the US dollar and cuts to energy and transportation subsidies triggered a sharp increase in prices, significantly impacting the purchasing power of Argentinians.

In response to the economic turmoil, Milei's administration unveiled measures to achieve fiscal balance, including tax hikes and the elimination of benefits for political elites, whom he refers to as "the caste."

These initiatives, while intended to address long-standing economic imbalances, have contributed to widespread social unrest and heightened financial distress among vulnerable segments of the population.

Argentina's economy ministry has disclosed its most recent economic data, which shows a 518.41 billion peso ($620.85 million) budget surplus for January—the first positive amount since August 2012.

While this development signals a potential turnaround, it is juxtaposed against the backdrop of surging poverty levels, highlighting the complexity of Argentina's economic landscape and the challenges facing policymakers in fostering inclusive growth.

Despite the efforts of President Milei's government to stabilise the economy, concerns persist regarding the long-term impact of austerity measures on vulnerable communities and the broader socio-economic picture of Argentine society.

(With inputs from Reuters)