‘A win for Free Market Capitalism’: Poverty rate in Argentina falls nearly 20%

Argentina’s poverty rate has dropped to 33.5%, down from its previous high in 2024 of 52.9%, according to preliminary data from the National Institute of Statistics (INDEC), processed by UTDT.

The data measures the poverty level from the final semester of 2024 (Aug-Dec), and January 2025. The official statistics will be finalized in March.

The fall in the poverty rate is being attributed to austerity measures implemented by President Milei to lower inflation and stabilize the economy. Milei slashed the size of the government, cut subsidies, eliminated regulations, and opened Argentina up to the world economy. Now, it appears that those drastic measures are paying off.

Historically, poverty has been seen as a lagging indicator of the state of an economy. It can someone take years to drop following the end of an economic downturn.

In Argentina’s case, inflation began to slow in March of 2024. Now, it appears that poverty rate has followed suit.

Milei previewed this drop at the end of 2024, writing on X that he is “Annihilating Poverty”.

Many around the world have used Argentina as proof that free-market capitalism is the way out of an economic catastrophe. The data showing a dip in the poverty rate will likely add to those beliefs.