Argentina's poverty rate has increased to 32.3 percent in the first half of 2026, according to official statistics released by the national statistics agency Indec. This represents a 4.1-point increase compared to the second half of 2025. The rate of extreme poverty also rose from 6.3 percent to 7.5 percent during the same period.
The increase in poverty rates deals a setback to President Javier Milei, who had nearly halved the poverty rate during the first two years of his mandate. Milei's policies, including shrinking inflation, had led to a significant decline in poverty rates. However, the latest figures indicate that incomes have not kept pace with rising prices, contributing to the increase in poverty.
Children are among the worst affected, with 44.5 percent of Argentines aged 14 years and younger classified as poor, and 10.8 percent as extremely poor. Indec considers adults who cannot afford a basic basket of goods and services valued at around $340 to be poor, while those who cannot afford a more basic food-only basket worth around $150 are considered extremely poor.
The poverty rate has fluctuated significantly since Milei took office, promising to revive the economy through austerity measures and deregulation. The rate had peaked at 52.9 percent in the first half of 2024 following a more-than-50-percent devaluation of the peso. It later fell to 28.2 percent in the second half of 2025.
Economists point to job insecurity as a major factor contributing to high poverty rates in Argentina. The manufacturing and retail sectors have experienced significant job losses due to falling purchasing power and increased foreign competition. Over 30,000 companies have closed since Milei took office, and unemployment rose to 7.9 percent in the second quarter of 2026.
Researchers, including Eduardo Donza from the Social Debt Observatory of the Argentine Catholic University, blame job insecurity for the high poverty rates. Donza notes that while unemployment is not the primary issue, the high rate of informal work is driving poverty. Many families are forced to engage in informal work, such as collecting waste or street vending, to make ends meet.
President Milei claims to have lifted 14 million people out of poverty, based on the decline in poverty rates from their peak after he took office. However, the latest figures suggest that poverty remains a significant challenge for Argentina, with many citizens struggling to afford basic necessities. The government faces pressure to address the issue, with protests demanding higher wages and public spending.
Key points
- Argentina's poverty rate increased to 32.3 percent in the first half of 2026.
- Children are among the worst affected, with 44.5 percent of those aged 14 and younger classified as poor.
- Economists blame job insecurity and the high rate of informal work for driving poverty in Argentina.
