Poverty rate rises to 35% in Argentina, testing Milei's support ahead of election

Source published 2h 44m agoTerminal published 2h 41m ago

Summary

Protests emerged in Buenos Aires as citizens expressed frustration over rising poverty levels, with private estimates suggesting the rate could increase to 35% by the end of 2026, up from 28% in 2025. President Javier Milei, who was elected in late 2023 with support from lower-income voters, has faced growing disapproval as many Argentines struggle with economic hardships despite the government's efforts to control inflation through strict austerity measures and a contractionary monetary policy. This situation poses a challenge for Milei as he prepares for a possible reelection bid in 2027, with nearly 70% of lower-income respondents in recent surveys indicating disapproval of his administration, a significant increase from the previous year.

Analysis

Ana Barreto: Ana Barreto is a teacher and community organizer in Villa Astolfi, Buenos Aires, who launched a local barter club in August. She facilitates cash-free exchanges of goods such as food and clothing among residents. In the news, Barreto highlights deepening poverty and the revival of barter practices amid household economic strains. Javier Milei: Javier Milei is the President of Argentina, elected in late 2023 on a libertarian platform focused on economic stabilization. His administration has prioritized austerity, fiscal surpluses, and inflation control while resisting increases in public spending. In the current news, Milei faces political pressure as poverty trends and lower-income voter dissatisfaction test his support ahead of the 2027 election. Agustín Salvia: Agustín Salvia directs the Argentine Social Debt Observatory at the Catholic University of Argentina (UCA). He analyzes social and economic indicators including poverty measurements. In this news, Salvia provides estimates indicating ongoing quarterly increases in poverty that could signal challenges for Milei's policy gains. Poverty Trends: Private estimates from UCA indicate poverty may rise by year-end, reversing some prior gains and highlighting limits of inflation slowdown alone. Economic Policy: Milei's government maintains strict austerity and contractionary monetary policy, refusing to expand spending or subsidies despite social strains. Political Support: Lower-income voters who backed Milei in 2023 show rising disapproval, testing his ability to maintain that base for a potential 2027 reelection bid.

Summary

Analysis

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