Thanks to Milei, poverty dropped from 54.8% to 31.7% in just one year

In a decisive turn, the national government led by Javier Milei achieved one of the most significant declines in poverty and extreme poverty in the country's history. According to data released by the Ministry of Human Capital, poverty dropped from 54.8% in the first quarter of 2024 to 31.7% in the same period of 2025, while extreme poverty fell from 20.2% to 7.3%. The figures correspond to a projection prepared by the National Council for the Coordination of Social Policies (CNCPS), which reports to the ministry headed by Sandra Pettovello, and are based on the latest Income Distribution Report published by INDEC.

This decrease of 23.1 percentage points in poverty and 12.9 points in extreme poverty in just one year marks a milestone in terms of social impact. According to Human Capital, the peak of poverty was reached precisely during the first quarter of 2024, with the economy still experiencing the consequences of the previous model. From that point on, the new libertarian direction began to show signs of effectiveness, prioritizing fiscal order, the fight against inflation, and the end of discretionary welfare policies.

"Two key factors explain this decrease: the economic policies implemented by the Government that helped balance the macroeconomy and curb inflation, and the targeting of transfers to the most vulnerable sectors, direct and transparent", states the official statement released this Thursday.

On a year-over-year basis, the change is remarkable. INDEC itself, in its semiannual series, had measured poverty at 52.9% in the first quarter of 2024, which by the second quarterhad dropped to 38.1%, in line with current data. The measurement by the Observatory of Social Debt in Argentina at UCA also reflected a relief in extreme poverty levels, which went from 8.2% to 7.3%, although this organization keeps a more cautious view regarding the structural trend.

The administration of Sandra Pettovello at the Ministry of Human Capital, key in providing social support without resorting to patronage mechanisms, is one of the pillars of the new paradigm. With a focus on spending efficiency, transparency in resource allocation, and the elimination of intermediaries, the Government managed to implement the adjustment with a total social focus.