Argentina poverty rate rises to 32.3% under Milei

September 25, 2026 at 05:23 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Argentina's poverty rate rose to 32.3 percent in the first half of 2026, up from 28.2 percent in the previous six months, according to INDEC. Extreme poverty increased to 7.5 percent, and unemployment reached 7.9 percent, the highest since 2021. The rise partly reverses gains from President Javier Milei's austerity program, even as inflation slowed.

Key Facts

Poverty rose 4.1 percentage points to 32.3% in the first half of 2026, according to INDEC.
Extreme poverty increased from 6.3% to 7.5% in the same period.
Unemployment reached 7.9% in the second quarter, the highest since 2021.
Household income per person rose 11.5%, but the cost of basic necessities rose nearly 20%.
UCA estimates poverty could reach 35% by the end of 2026.

Poverty and Unemployment Data

INDEC reported the poverty rate rose from 28.2% to 32.3% between the second half of 2025 and the first half of 2026. Extreme poverty, defined as households unable to afford basic food needs, increased from 6.3% to 7.5%. Unemployment climbed to 7.9% in the second quarter, the highest level since 2021. Household income per person rose 11.5% in the first six months, but the cost of necessities used to calculate the poverty line rose nearly 20%.

Milei's Economic Record

Poverty surged to nearly 53% in the first half of 2024 after Milei's peso devaluation and spending cuts. The rate then fell to 28.2% in the second half of 2025, the lowest since early 2018, as austerity eased inflation. Even with the latest rise, poverty remains below the level of Milei's first year in office. Average salaries are still below their real level when Milei took office in December 2023.

Outlook and Analyst Views

UCA estimates suggest the poverty rate could rise to 35% by the end of 2026. Nicholas Watson of Teneo said a modest increase would not undo the large decline under Milei but would suggest the easier part of the improvement has run its course. Analysts say further progress depends on stronger job creation and real wage growth.