A recent investigation carried out by the Catholic University of Argentina (UCA) has unveiled concerning figures, indicating that the poverty rate in Argentina has soared to 57.4 per cent, marking the highest recorded level in at least two decades.
As reported by local media, the study underscores the economic hardships faced by the South American nation, which have been exacerbated by currency devaluation and subsequent price hikes.
President Javier Milei, a libertarian figure, expressed dismay over the grim reality highlighted in the report, stating, “The true inheritance of the caste model: Six out of every 10 Argentines are poor.”
Milei’s remarks reflect the growing discontent among Argentinians grappling with economic challenges and disillusionment with conventional political structures.
Assuming office with promises of radical economic reforms, President Milei initiated sweeping changes aimed at stabilising the economy, addressing hyperinflation, and tackling fiscal deficits.
However, the implementation of policies, including a 54 per cent devaluation of the peso against the US dollar and reductions in energy and transportation subsidies, led to a sharp rise in prices, significantly impacting the purchasing power of the population.
In response to the economic turmoil, Milei’s administration introduced measures to achieve fiscal equilibrium, including tax increases and the abolition of privileges for political elites, whom he refers to as “the caste.”
While these initiatives were intended to address long-standing economic disparities, they have contributed to widespread social unrest and increased financial strain among vulnerable sectors of society.
Argentina’s Ministry of Economy has released its most recent economic figures, indicating a budget surplus of 518.41 billion pesos ($620.85 million) for January—the first positive amount since August 2012.
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