Argentina's Economic Rebound: Poverty Reduction Sparks Hope Amid Challenges

Argentina's poverty rate has dropped significantly, marking progress for President Javier Milei's government. The rate fell from 52.9% to 38.1%, aided by decreased inflation and fiscal policies. Despite the improvement, millions remain in poverty, struggling with the effects of Milei's austere economic measures.

Argentina has seen a notable reduction in its poverty rate during the latter half of 2024, the INDEC Statistics Agency reported. This improvement represents a significant turnaround for President Javier Milei, whose initial austerity measures had plunged millions into hardship.

The poverty rate has fallen to 38.1% from a staggering 52.9% earlier in the year, following the devaluation of the peso and severe cuts to state spending. These changes aimed to address a deep fiscal deficit, boosting Milei's standing ahead of the midterm elections, although protests continue over a cost-of-living crisis.

Despite the drop in poverty levels, which benefited from reduced inflation, millions are still affected. Many Argentines continue to endure difficult conditions, struggling with low-salary, informal jobs. Even amidst these challenges, there is hope that the worst of the poverty crisis might be over, as inflation remains under control.

(With inputs from agencies.)