Inflation under control, an economy growing at a speed of almost 6% per year, the real wage in full growth and the risk of default ignites years in 2023. After more than a year and a half, washing in the face that Argentina Miley obeys is not a problem in the economy. Milei, instead of increasing government spending or establishing new regulation that seeks to solve problems, chose the other way around. The Argentine politician decided to receive a “leadership on liberal policy” To establish huge state reductions in expenses, mass deregulation in all sectors and allow Adam Smith to start his work “invisible hand”. To the surprise of many … while it works! Poverty fell with intensity in Argentina during the first quarter of the year, despite the bad march in the economy.
The Argentine government and two private organizations published data on poverty for the first quarter of the year. Although the data does not coincide perfectly, among the three entities that published their statistics, they look a lot and show that the poverty level is already at least in 2018. This may seem enough, but the truth is that for a country that has impoverished decades, it hugs a “return” in time to move forward in economic terms. The result, published by the Ministry of Human Capital, shows that in the first three months of 2025, poverty fell by more than 20 percentage points compared to the same period last year, last year. Until it reaches 31.7%, a minimum that has not been seen since 2018Field
This was declared the Ministry of Human Capital in its statement published in his report on the social network X, which showed that “poverty fell by 12.9 percentage points in relation to the first quarter” of 2024. The numbers were extracted from the work of the National Council for Coordination of Social Policy (CNCPS), attached to the service Portolio, although they are on the contrary. and census) Indec, and, in particular, his “Report on the distribution of income”, published on Thursday.
“This estimate by 31.7% is a year to fall by 23.1 percentage points (PP) in relation to the first quarter 2024, when the highest poverty peak was registered with a forecast of 54.8%, ”the Argentine government says.
The executive director of Havier Miley emphasized that, according to Indec, poverty fell from 52.9% to 38.1% between the first and second semester of 2024, given that he began his mandate at the end of 2023.
He also checked that in the first quarter 2024 to 7.3 in the same period of this year, “incompararation” decreased from 20.2%, which is a year, throughout the vacation of almost 13 percentage points. The Argentine government explained these data “To implement economic policy, which contributed to reducing inflation and stabilizing the economy”The celebration that “poverty continues to descend into the Latin American country.
Why poverty enters Argentina
The policy of Miley and his government during this period had the main goal: to overcome inflation and avoid hyperinflation that continued. Fiscal savings, restraining government spending and Freezing the monetary base They help to contain inflation because they reduce the pressure of the demand for prices. The strong moderation of inflation, together with the restoration of the economy (it has three quarters), which has increased) made it possible to increase the purchasing power of the Argentines and real wages (inflation discounting). Today, the Argentines are in the best economic situation than several years ago.
How will inflation stop? When the government limits its expenses and avoids the introduction of large amounts of money into the economy, reduces the risk of redundant money pursuing a limited amount of goods and services that usually cause prices.
In addition, upon stopping the growth of the monetary base, an artificial increase in liquidity is avoided, which retains inflationary expectations more stable. This fiscal and monetary discipline also Strengthens confidence in the macroeconomic stability of the countryconsolidation of consumer and investors.
At the same time, this allowed the economy of Argentina to grow again with great intensity, transferring the real component of private consumption to historical maximums. This consumption indicator is often the best “proxy” of the favor of the population, since he reveals the real consumption of households (consumption of goods and services). Thanks to the descending poverty, updating GDP and on the way, the Argentina economy should continue to flourish in the next quarters.
