According to a report from the National Institute for Statistics and Census (INDEC), Argentina's poverty rate soared to 40.1% in the first half of 2023, affecting 11.8 million people. This number marks a 3.6 percentage point increase from the same period last year, signifying that 1.2 million more individuals now live below the poverty line. The INDEC emphasized that 56.2% of children under 14 are living in poverty, based on the most recent data available.

Since the beginning of 2021, when the nation was still recuperating from the effects of the COVID-19 epidemic, which had caused a 10% decline in GDP, this figure for poverty represents the greatest rate.

In contrast, 9.3% of Argentineans live in poverty, an increase of 0.5 percentage points from the first half of 2022. Why? A family is deemed “destitute” by INDEC when their monthly income is less than the cost of a basic food basket. If a family's income is less than the basic basket's total, which includes both food and services, that family is deemed to be living in poverty.

A study by the Center of Argentine Economic Politics (CEPA) identified several factors contributing to this situation. The primary factor is the rise in food inflation. That averaged 7.7% per month in the first half of the year, compared to 5.8% in the same period of 2022. The report noted that since food prices determine the cost of the food basket and a significant portion of the total basic basket, increased food inflation exerts upward pressure on both the deprivation and poverty rates.

Salaries also explain the rise in poverty. The CEPA report indicated a rise in the phenomenon of “poor workers.” Since the median pay in August 2023 only covered 85.6% of the basic basket, full-time registered workers may also fall below the poverty line.

In the second quarter of 2023, unemployment was at a record low of 6.2%. This is according to a study released by INDEC in September.

According to a report by Ecolatina, “getting a job is not the problem; the problem is keeping it or getting one that pays enough to sustain a certain living standard.”

The Monthly Estimate of Economic Activity for July (EMAE, to give it its Spanish initials) was released by the INDEC on Tuesday. The budget for 2023 predicts a 2.5% decline in the GDP for this year, signaling an even deeper recession, down from the 1.3% decline it saw during the same period in 2022.

Along with Argentina's economic difficulties, the rising rates of poverty are having a significant impact on many facets of society. A decrease in general health and well-being among impacted people and families is possible as a result of rising rates of poverty and deprivation. It frequently has the effect of restricting access to healthcare, education, and other necessary services, locking generations in a cycle of poverty.

################

We value your opinion! Please take a moment to share your thoughts by filling out our brief survey linked below this article.