Argentina's Battling Poverty Amidst Austerity

Irma Casal, a 53-year-old from Buenos Aires, struggles with multiple jobs to support her family amidst Argentina's economic crisis. Poverty rates are expected to exceed 50% due to President Javier Milei’s austerity measures aimed at resolving national debt. The government and economic experts show conflicting signs of improvement.

Irma Casal, a 53-year-old in Buenos Aires, juggles three shifts as a garbage recycler, cardboard collector, and bricklayer. Despite her efforts, she struggles to make ends meet, reflecting the rising poverty levels facing many Argentines.

Argentina is due to publish data indicating that poverty rates have soared past 50% during the first six months under libertarian President Javier Milei. The tough austerity measures enacted to dig the country out of debt have resulted in widespread job losses and economic hardship. 'Since this government came to power, jobs have dropped away. We work twice as hard for less and we have to keep going,' said Casal, who has 14 children and 42 grandchildren, in the low-income Buenos Aires suburb of Villa Fiorito.

The release of the January-June data will provide concrete evidence of the rising poverty rates since President Milei assumed office in December. Although markets and investors have approved Milei's spending cuts for stabilizing state finances after years of deficits, these measures have thrown the country into a deep recession. Despite this, there are emerging signs that the economy may be stabilizing.

According to the Catholic University of Argentina's Observatorio de la Deuda Social, the poverty rate surged to 55.5% in the first quarter of the year, before easing to 49.4% in the second quarter. On average, this signifies a 52% poverty rate for the first half of the year. 'Any level of poverty is horrendous,' acknowledged Agustin Salvia, director of the observatory, adding that while Milei's policies heavily impacted the early months, there have recently been signs of improvement.

In light of Milei's measures, the government has scaled back some welfare programs and support to soup kitchens, while bolstering key initiatives such as the Universal Child Allowance and a Food Card program aimed at directly assisting families. 'Any level of poverty is horrendous,' emphasized presidential spokesman Manuel Adorni, who blamed past governments for the economic challenges Milei is now attempting to remedy. 'What has been done in social terms in Argentina in the last 50 years is shameful... We are doing everything, everything, everything so that this situation changes.'

(With inputs from agencies.)