Poverty in Argentina climbs to 32% as Milei faces mounting challenges

Argentina’s poverty rate reached 32 percent in the first six months of 2026, a rise of 4.1 percentage points from the same period a year earlier, according to Al Jazeera. The increase comes amid President Javier Milei’s aggressive economic overhaul, which has sparked both domestic unrest and international scrutiny.

The latest figures, released by the national statistics institute, show that nearly one in three Argentines now live below the poverty line. Al Jazeera noted that the surge could undermine Milei’s bid for re‑election, as voters grapple with higher food prices, soaring inflation and a shrinking job market.

Milei, who took office in December 2023 on a platform of radical market liberalisation, has pursued a series of austerity measures, including cuts to subsidies, a push toward dollarisation and a steep reduction in public spending. While his supporters argue that these steps are necessary to curb the country’s chronic fiscal deficits, critics say they have accelerated the cost‑of‑living crisis for ordinary families.

Background context Argentina has a long history of economic volatility, marked by recurring debt crises and hyperinflation. Prior to Milei’s administration, the poverty rate hovered around 28 percent in 2025, a level already considered high for a middle‑income nation. The government’s recent policies mirror those of earlier reformist regimes that sought to stabilise the peso by tightening fiscal discipline, but they often triggered short‑term social pain. Analysts warn that without targeted safety‑net programs, the current trajectory could push poverty even higher, potentially exceeding 35 percent by the end of 2026.

Political observers note that the upcoming mid‑term elections in 2027 will be a litmus test for Milei’s reform agenda. If the poverty trend continues, opposition parties may capitalise on public discontent, framing the president’s market‑first approach as out of touch with the needs of the poor.

The government has pledged to monitor the situation closely and hinted at possible adjustments to social assistance programmes, though details remain scarce. For now, the stark rise in poverty adds a new layer of uncertainty to an already turbulent economic landscape in Argentina.