Argentina’s Poverty Rate Climbs to 32% in First Half of 2026

Argentina’s poverty rate jumped to 32.3% in the first six months of 2026, up from 28.2% in the previous half‑year. The rise erases much of the progress achieved under President Javier Milei, with extreme poverty and unemployment also climbing. Analysts warn that job insecurity and a surge in inform…

By Felo News Desk · Published Fri, 25 Sep 2026 04:12:22 GMT

Argentina’s poverty statistics for the first half of 2026 show a sharp rise, with the national poverty rate climbing to 32.3 percent. The increase, measured by the national statistics agency INDEC, represents a 4.1‑point jump from the 28.2 percent recorded in the second half of 2025. The figure signals a reversal of the gains that President Javier Milei’s austerity and deregulation agenda had produced in the previous year.

Background: Milei’s Economic Turnaround

When Mile — a libertarian economist elected in December 2023 — took office, Argentina was grappling with a historic high in poverty. In the first half of 2024, the poverty rate had surged to almost 53 percent, a consequence of a 50‑plus percent devaluation of the peso and sweeping spending cuts that eroded purchasing power. Milei’s government then pursued a hard‑line approach aimed at curbing inflation and restoring fiscal balance. By the end of 2025, the poverty rate had fallen to 28.2 percent, the lowest level since the early 2018, largely thanks to a steep decline in inflation.

Current Figures and Their Implications

First‑half 2026 poverty rate: 32.3 % (up 4.1 pp from 2025)
Extreme poverty: 7.5 % (up from 6.3 %)
Unemployment: 7.9 % in Q2 2026, the highest since 2021
Household income per person rose 11.5 % in the first six months, but the cost of the poverty‑line basket rose nearly 20 %
Children under 14: 44.5 % classified as poor, 10.8 % extremely poor

These numbers suggest that while nominal incomes have edged up, the rapid rise in the cost of basic goods has outpaced wage growth. The disparity between income gains and price increases has pushed more households below the poverty threshold.

Drivers of the Poverty Surge

Economic analysts point to several factors behind the rebound in poverty:

Job insecurity – The manufacturing and retail sectors have lost thousands of jobs as Argentina opened its markets to foreign competition, leading to a surge in imports and a decline in domestic production.
Informal employment – With formal jobs scarce, many families turn to informal work such as waste collection, street vending, or selling food at transit hubs. Informal work offers little security or benefits, making households vulnerable to price shocks.
Inflation rebound – Early‑year inflation rose before falling to 1.7 % in August, the lowest in 14 months. However, the initial spike eroded purchasing power for many families.
High debt burden – Rising household debt has strained budgets, especially for lower‑income households that rely on credit to meet basic needs.

University of Catholic Argentina researchers estimate that poverty could reach 35 % by year‑end, underscoring the urgency of the situation.

Political Fallout and Public Sentiment

Milei’s popularity among poorer voters has dipped sharply. A September AtlasIntel survey found that among respondents earning up to about $650 a month, disapproval climbed to nearly 70 %, while approval fell below 30 %. In contrast, a year earlier the figures were 57 % disapproval and 37 % approval. The decline in support among the very demographic that helped Milei win the 2023 election raises questions about his prospects for a 2027 re‑election campaign.

Protests have erupted across the country. Workers, union members and social activists have marched toward the Economy Ministry in Buenos Aires, demanding higher wages and increased public spending. The demonstrations reflect growing frustration over rising household debt and the erosion of the social gains that Milei’s policies initially promised.

What Happens Next?

As the year progresses, economists and policymakers will monitor whether Milei can reverse the trend by creating more stable jobs and ensuring wages keep pace with inflation. The government’s next fiscal measures, potential adjustments to social safety nets, and any changes to trade policy will be critical in determining whether the poverty rate can be brought back down. Meanwhile, public opinion polls will continue to track the president’s standing among lower‑income voters, a key indicator of his political viability.

In short, Argentina’s poverty statistics reveal a complex picture: a significant rebound in poverty and extreme poverty, rising unemployment, and a growing sense of discontent among the most vulnerable. The coming months will test whether Milei’s economic reforms can deliver lasting social benefits or whether the country will face deeper inequality and political instability.

Key facts

Poverty rate rose to 32.3 % in first half of 2026, up 4.1 pp from 2025
Extreme poverty climbed to 7.5 % and unemployment hit 7.9 %
Job insecurity and informal work are key drivers
Milei’s approval among lower‑income voters fell to below 30 %
Protests demand higher wages and more public spending
Poverty could reach 35 % by year‑end according to UCA
Argentina’s economic policy shift is under scrutiny as social gains erode

Why it matters

The rise in poverty threatens Argentina’s social stability and could undermine the president’s re‑election bid, while also signaling challenges in balancing inflation control with job creation.