Argentina's Poverty Climbs to 32 Percent Under Javier Milei as Economic Strain Persists

People sit inside a chapel while waiting for a meal distribution in the Villa 31 neighbourhood of Buenos Aires, Argentina, on August 28, 2026. Argentina’s poverty rate has climbed to 32.3 percent in the first half of 2026 under President Javier Milei, partially reversing the nation's previous improvements.

Figures released by the national statistics agency INDEC on Thursday show that the poverty rate increased by 4.1 percentage points between January and June compared with the final half of 2025, shifting from 28.2 to 32.3 percent. Extreme poverty, defined as households unable to cover basic food requirements, also grew from 6.3 to 7.5 percent.

Additionally, more Argentinians faced unemployment in the second quarter as the jobless rate reached 7.9 percent, marking the country's highest level since 2021. For those maintaining employment, wage growth has failed to keep pace with soaring costs for essential goods and services. INDEC reported that while per capita household income climbed 11.5 percent in the first six months of the year, the cost of necessities used to determine the poverty line jumped nearly 20 percent.

Further economic hardship is anticipated. Projections from the Catholic University of Argentina (UCA), frequently viewed as an early indicator for official poverty metrics, indicate the rate could reach 35 percent by year's end.

Argentinian President Javier Milei gestures as he speaks during a ceremony commemorating the 172nd anniversary of the Buenos Aires Stock Exchange in Buenos Aires, Argentina, on July 16, 2026. This development follows repeated statements from Milei, who took office in 2023, highlighting declining poverty as proof that his free-market economic overhaul was succeeding.

Poverty had surged to nearly 53 percent in the first half of 2024 following his administration's peso devaluation and aggressive spending cuts that sharply diminished purchasing power. However, the rate subsequently dropped rapidly as Milei’s austerity measures reined in inflation, settling at 28.2 percent in the second half of 2025—the lowest mark since early 2018.

Despite the recent increase, poverty remains below the levels seen in the first half of 2024, during Milei's inaugural year in office, when it surpassed 50 percent. Analysts suggest the uptick may indicate that social gains driven by decelerating inflation are running out of momentum, with future progress increasingly reliant on robust job creation and real wage growth. Average salaries still trail their real-world value from when Milei assumed office in December 2023.

“A modest increase in poverty would not undo the large decline seen under Milei, but it would suggest that the easier part of the improvement has run its course,” said Nicholas Watson, managing director for Latin America at consultancy Teneo.

Workers, union members and social organisation activists march towards Argentina’s Economy Ministry in Buenos Aires, Argentina, on August 20, 2026, during a demonstration organized to protest rising household debt. The growing hardship appears to erode Milei's backing among lower-income voters ahead of his 2027 re-election bid. Recent opinion polls indicate a significant drop in approval ratings among surveyed lower-income respondents, casting doubt on whether he can sustain a demographic that proved vital to his initial election victory. A September AtlasIntel survey revealed that disapproval among lower-income individuals—categorized as those earning up to roughly $650 monthly—surged to nearly 70 percent, while approval dropped below 30 percent, compared to 57 percent and 37 percent respectively the previous year.