ARGENTINA’S POVERTY RATE HITS 20-YEAR HIGH; “SIX OUT OF EVERY 10 ARGENTINES ARE POOR”

Mon 19 February 2024:

Argentina’s percentage of the population living in poverty has risen to 57.4%, the highest level in at least 20 years, according to the recent study conducted by the Catholic University of Argentina (UCA) has revealed alarming statistics.

The study, which has been reported by regional media, emphasizes the South American country’s economic difficulties, which are made worse by currency devaluation and the ensuing price increases.

President Javier Milei, a libertarian, tweeted, “The true inheritance of the caste model: Six out of every 10 Argentines are poor,” expressing shock at the devastating facts presented in the report.

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.

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.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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