Poverty in Argentina hits 20-year high

According to a report by UCA, one of the country's leading economic universities, the devaluation of the national currency by recently elected President Javier Milei and the subsequent increase in prices have led to a worsening poverty situation. While the poverty rate was 49.5 per cent at the end of 2023, it jumped to a record 57.4 per cent as early as January.

The report also says that at least 27 million people in the country live in poverty and another 9 million are in extreme need, out of a total population of 47.3 million. Milei's reforms have led to an increase in the price of basic foodstuffs, the UCA emphasised. The inflation rate for last year was 211.4 per cent.

Argentine President Javier Milei, who took office last December, signed more than 300 decrees to liberalise the country's economy. He warned of the need to endure months of pain to overcome the economic crisis.

Milei's reforms include devaluation of the national currency by 50%, cuts in state subsidies for energy and transport, and changes in labour laws. For example, the probationary period for employment was increased to eight months, 12-hour working days were allowed, and compensation for holidays and dismissals was reduced.

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