Argentina’s Poverty Rate Drops Amid Milei’s Reforms

Argentina's poverty rate significantly decreased from 52.9% in the first half of 2024 to 38.1% in the latter half, marking a 14.8 percentage point drop under President Javier Milei's administration. This decline is attributed to Milei's aggressive economic reforms, which included austerity measures, devaluing the peso, and reducing federal spending, thereby taming inflation from nearly 300% to below 70%. While these policies have led to economic growth forecasts of nearly 5% for the coming year, they have also sparked public protests due to the harsh impact on essential services and cost of living. Critics argue that although poverty statistics have improved, many Argentinians continue to struggle under the severe austerity measures. Despite these challenges, Milei's reforms have boosted his political standing ahead of upcoming midterm elections. However, Argentina still faces economic hurdles, including the need for a $20 billion loan from the IMF to stabilize its currency reserves.