Argentina's Poverty Rate Falls to Seven-Year Low in First Half of 2025

Significant Decline in Poverty Indicators

Argentina's poverty rate experienced a substantial decrease, falling to 31.6% in the first half of 2025. This figure, released by the National Institute of Statistics and Censuses (INDEC), represents the country's lowest poverty level since 2018, when the rate stood at 32% in the second half of that year. The recent decline marks a significant improvement from the 38.1% recorded in the second half of 2024 and a sharp reduction from the 52.9% observed in the first half of 2024, which was the highest in two decades.

The report also indicated a drop in extreme poverty, which decreased to 6.9% in the first half of 2025. This is down from nearly 14% in mid-2024 and 8.2% in the latter half of 2024. Despite these positive trends, more than 14 million Argentines, approximately one-third of the population, continue to live below the poverty line.

Economic Factors and Government Response

The reduction in poverty is largely attributed to a combination of factors, primarily the cooling of inflation and an increase in household purchasing power. Monthly inflation rates slowed to below 2% in early 2025, a stark contrast to peaks above 200% in 2023. Annual inflation plummeted to 66.9% in March 2025, down from 276.2% a year prior.

Household incomes rose by an average of 26.3%, outpacing the 12.3% increase in the overall basic basket and the 13.2% rise in the cost of food. Real wages in the private sector also saw a 10.4% growth between December 2023 and May 2025. President Javier Milei's administration has hailed these improvements as a direct result of its economic policies, including austerity measures, currency controls, and tight monetary policy. President Milei himself commented on social media, stating, 'Poverty continues to decline. Freedom advances or Argentina retreats. Long live freedom, damn it!!!'

Lingering Challenges and Measurement

While the overall figures show improvement, significant challenges persist. Child poverty remains a concern, with 45.4% of children under 14 still living in poor households. Additionally, unemployment remains elevated, and the prevalence of informal jobs, which typically offer lower salaries and fewer protections, has increased. Economic activity also saw a contraction for three consecutive months through July.

INDEC's poverty measurements are based on data from 31 urban centers across the country, representing approximately 62% of the total population. Poverty is determined by a household's ability to afford the basic food basket (CBA) and the overall basic basket (CBT), which includes food, goods, and services.

Conclusion

The notable drop in Argentina's poverty rate to its lowest point in seven years provides a significant boost for President Milei's government, which has championed its economic reforms as crucial for national recovery. While the figures reflect a positive shift driven by macroeconomic stabilization, the administration continues to face the complex task of addressing persistent social inequalities and ensuring sustained economic improvement for all Argentines.