Argentina’s poverty rate rose to 57.4% last month, reaching the highest rate in at least the past 20 years, according to a report by the Catholic University of Argentina.
According to Reuters, local media attributed the report to the devaluation of the peso, implemented by new president Javier Millay shortly after taking office in December, which caused poverty levels to worsen.
In fact, the poverty level at the end of the year was 49.5%.
The devaluation of the peso has increased the price of almost everything.
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“We Accept Dollars” sign reads in Spanish outside a store in Buenos Aires, Argentina, December 12, 2023. (Reuters/Thomas Cuesta/File photo)
“The true inheritance of the caste model: 6 out of 10 Argentines are poor,” the liberal president said in a social media post on Saturday. “The destruction of the past 100 years is unprecedented in Western history.
“Politicians need to understand that the people voted for change and that we are willing to give our lives to bring it forward,” Millais added. “We’re not here to play the mediocre game of politics. We’re here to change this country.”
Since taking office on December 10, Millay has delivered on a number of campaign promises to overhaul Argentina’s historically socialist federal government.
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Argentina’s President Javier Millei speaks after the inauguration ceremony at the National Congress on December 10, 2023 in Buenos Aires, Argentina. (Marcelo Endelli/Getty Images)
However, Millais’s fundamental overhaul of the domestic economy is not expected to proceed smoothly. The president himself has characterized this as economic “shock therapy” that will negatively impact thousands of Americans.
Milley signed a decree in December outlining a plan to deal with the crisis. Reuters reported that the plan also included privatizing state-owned companies, although he did not name specific companies. He previously said he was in favor of privatizing state oil company YPF.
Argentina, South America’s second-largest economy, is suffering from 143% annual inflation, causing its currency to collapse.
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A giant dollar bill with President-elect Javier Millei’s face on it is displayed as people begin to gather outside the National Assembly ahead of his inauguration ceremony on December 10, 2023 in Buenos Aires, Argentina. Supporters. (Marcelo Endelli/Getty Images)
The country also has a $43 billion trade deficit and $45 billion in debt to the International Monetary Fund, with $10.6 billion due to be paid to private and multilateral creditors by April.
On Friday, the country’s Economy Ministry reported a budget surplus of 518.41 billion pesos ($620.85 million) in January. The announcement marks the first time the numbers have turned green since August 2012.
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Reuters reported that a copy of the report could not immediately be seen.
Fox News Digital’s Timothy HJ Nerozzi and Reuters contributed to this report.
