Poverty in Argentina rises to 32.3%, ending two years of decline

Argentina's poverty rate climbed to 32.3% of the population in the first half of 2026, marking a 4.1 percentage point increase from the same period in 2025, according to the National Institute of Statistics and Census. This marks a reversal of the downward trend seen since mid-2024. Extreme poverty surged by 1.2 percentage points, rising from 6.3% to 7.5%.

The poverty line calculation, based on the cost of a basic food basket, affects 9.7 million people in urban agglomerations, with 2.25 million living in extreme poverty. This translates to 24.4% of households below the poverty line and 5.6% in extreme poverty. The year-over-year figures contrast with 31.6% and 6.9% for poverty and extreme poverty, respectively, in the first half of 2025.

Despite the upward trend, some regions remain affected more severely. Concordia experienced the highest poverty rate at 56.2%, followed by Gran Resistencia at 48.6% and Posadas at 42.2%. The Buenos Aires metropolitan area saw a 36.9% poverty rate, while the city itself had a 11.1% rate. Expert Leopoldo Tornarolli noted that the rise is not unexpected, driven by the increase in inflation and weak formal labor market growth.

Recent economic activity data showed a 2.9% decline in July compared to June, attributed to factors like reduced industry gas availability, exceptional weather events, and fewer work hours due to the World Cup. Economy Minister Luis Caputo stated that both poverty rates saw a significant drop compared to the first half of 2024, citing devaluation and price corrections as contributing factors.