Argentina Cuts Poverty Rate by 10 Points in One Year
After a year of dramatic economic reforms, Argentina's poverty rate dropped from 38.1% to 28.2%, lifting millions above the poverty line. The improvement marks the country's lowest poverty level in seven years.
More than 4 million Argentinians climbed out of poverty in just one year, as the country's poverty rate fell to its lowest point since 2018.
New government data shows Argentina's poverty rate dropped to 28.2 percent in late 2025, down from 38.1 percent a year earlier. The steep decline represents one of the fastest improvements in living standards the country has seen in recent memory.
The turnaround came as Argentina tamed runaway inflation that had squeezed families for years. Inflation dropped from 117.8 percent at the end of 2024 to 31.5 percent by the end of 2025, allowing household incomes to stretch further.
About 2.1 million Argentine households now live above the poverty line. Extreme poverty also fell, affecting 6.3 percent of the population compared to 6.9 percent six months earlier.
The improvement shows up in family budgets across the country. Total household income rose 18.3 percent year over year, outpacing the cost of living increases that had crushed household finances.
President Javier Milei's economic reforms, including deep cuts to government spending, helped stabilize prices after years of economic chaos. The changes gave families breathing room as the cost of basic goods stopped spiraling upward.
The Ripple Effect
The poverty decline reached across age groups and regions, though younger Argentinians still face higher rates. Among children under 14, poverty fell from previous highs, even as this age group remains disproportionately affected.
Different regions saw varying improvements, with Patagonia recording the lowest poverty rate at 25.4 percent and the Northeast facing the highest challenges. But every region moved in the right direction.
Economy Minister Luis Caputo noted that Argentina's economy grew 4.4 percent last year, creating conditions for continued progress. The growth signals that families have more opportunities ahead as the economy stabilizes.
Challenges remain, particularly in creating jobs across all sectors. Manufacturing and construction still lag behind agriculture and finance in recovery, meaning the benefits haven't reached everyone equally.
Still, the data tells a story of genuine progress for millions of families who can now afford food, shelter, and basic necessities that seemed out of reach just a year ago.
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Based on reporting by Buenos Aires Times
This story was written by BrightWire based on verified news reports.
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