In Argentina, poverty has reached a 20-year high
The poverty rate in Argentina reached 57.4% in January, the highest in two decades, Reuters reported, citing data from Pontificia Universidad Católica Argentina (UCA), one of the country's leading economics universities.
According to the UCA report, the devaluation of the national currency by newly elected President Javier Miley and the subsequent increase in prices led to a worsening of the poverty situation. At the end of 2023, the poverty rate was 49.5%, and already in January this figure rose to a record 57.4%.
The report also notes that across the country, at least 27 million people live in poverty, and another 9 million are in extreme hardship (out of a total population of 47.3 million). Miley's reforms led to an increase in prices for basic food products, UCA emphasizes. Inflation in the country last year amounted to 211.4%.
Argentine President Javier Miley, who took office in December last year, signed more than 300 decrees to liberalize the country's economy. He warned of the need to endure «months of pain» to overcome the economic crisis.
Miley's reforms include devaluing the national currency by 50%, cutting government subsidies for energy and transport, and changes to labor laws. For example, the probationary period for employment was increased to eight months, 12-hour working days were allowed and compensation for vacations and layoffs was reduced.
Trade unions were outraged by the latest measures, which sparked protests on the streets of Buenos Aires. Some members of Congress called the president's radical steps unconstitutional, and the opposition promised to oppose their implementation.