As poverty and inflation plunge, Milei’s reforms begin to reshape Argentina’s economy.
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Argentina’spovertyratefellsharplyinthesecondhalfof2024,accordingtoofficialdatareleasedthisweek,markingamajormilestoneforPresidentJavierMilei’ssweepingeconomicreforms.
Accordingtothecountry’sofficialstatisticsagency,theNationalInstituteofStatisticsandCensus(INDEC),thepovertyratefellto38.1percentbetweenJuly2024andDecember2024—downnearly15percentagepointsfromthefirsthalfoftheyear.Householdpovertyalsodeclinedby13.9percentagepoints,hitting 28.6percent.Andextremepovertywascutbymorethanhalf,fallingfrom18.1percentto8.2percent.
It’samajorturnaroundfromthebeginningofMilei’spresidency.WhenhetookofficeinDecember2023,heinheritedapovertyrateof41.7percent,whichquicklysurgedto53percentashisadministrationlauncheda“shocktherapy”programtoendArgentina’seconomicmisery.
Oneofthebiggestdriversbehindthepovertydeclineisthesharpdropininflation.Annualinflation,whichreac
