Meanwhile, as inflation falls and wages rise, poverty rates in the country are dropping sharply again
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The most recent report from the poverty nowcast prepared by Universidad Torcuato Di Tella (UTDT) reveals a new drop in the poverty rates in Argentina, thanks to the policies implemented by the Government of Javier Milei.
This report, based on updated data from the Permanent Household Survey (EPH) of INDEC, estimates that the poverty rate for the fourth quarter of 2024 stands at 35%, while for the January-February two-month period of 2025 it dropped to 33.6%.
However, an impressive news is that, for the semester from September 2024 to February 2025, poverty fell to 34.9%, the lowest figure since 2019.
This figure is a reflection of the improvement in the distribution of family income and a clear sign that the economic recovery achieved by the Milei administration is beginning to take effect.
The nowcast, which estimates the incidence of poverty in urban households semiannually, highlights that the year-on-year increase in total family income (ITF) has been outstanding, reaching an increase of 167.4%, well above inflation.
Datos de la UTDT.
This allowed family incomes, especially in the lower strata, to grow above the increases, which led to a closing of the gap between incomes and the cost of the total basic basket (CBT). While in the first semester of 2024 the gaps between incomes and basic baskets drove an increase in poverty and indigence rates, from the second semester the outlook began to change favorably.
Additionally, according to the study, the poverty rate was 38.8% for the third quarter of 2024, 35% for the fourth quarter, and 33.6% for the January-February two-month period of 2025, a drop that hadn't been seen in many years. In terms of people, projections indicate that 9 million Argentines came out of poverty compared to the beginning of last year.
To better understand this change, it is important to observe the evolution of baskets and incomes in the households of the most vulnerable sectors. During the February-July 2024 semester, the gaps between the variation of the baskets and the growth of household incomes began to narrow.
La pobreza no para de caer.
From the April-September semester, this trend consolidated, with incomes growing above the cost of the baskets, resulting in a notable decrease in poverty and indigence rates in the June-November semester. Specifically, poverty fell from 52.9% in the first semester of 2024 to 34.9% in this last projected semester.
This decline in poverty is also joined by a drop in indigence, which has been reduced from 18.2% to 8.7% in the same period. The drop in indigence is a direct reflection of the implementation of policies that managed to improve the living conditions of the poorest sectors, through the increase in incomes and the strengthening of the labor market.
The Milei Government, with the economic deregulation and the reduction of inflation, managed to improve the purchasing power of Argentines, which has translated into a relief for millions of people who suffered the consequences of the enormous poverty inherited from Kirchnerism. The increase in family income, especially among the lowest deciles, allowed households to improve their ability to access basic goods and services.
This report reflects a significant advance in the fight against poverty in Argentina, a historic achievement. These results are a clear demonstration that the reforms implemented are bearing fruit, marking a essential improvement in the quality of life of Argentines.
