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Argentina Poverty Falls to 36.3% — Lowest Rate Since 2018; Extreme Poverty Declines Sharply

11:15 PM, 12/05/2025
Argentina Poverty Falls to 36.3% — Lowest Rate Since 2018; Extreme Poverty Declines Sharply

Argentina's income-based poverty rate fell to 36.3% in Q3, down from 45.6% in the same quarter of 2024, marking the lowest level since 2018, according to a Social Debt Observatory report. Extreme poverty also declined to 6.8% from 11.2%, a change the study attributes mainly to lower inflation and increased cash transfers — notably a larger Universal Child Allowance. Researchers caution that structural inequality, high informality and unemployment persist and call for long-term inclusive economic policies.

Argentina Sees Significant Decline in Poverty

Income-based poverty in Argentina fell to 36.3% of the population in the third quarter (Q3), down from 45.6% in Q3 2024, according to a report by the Social Debt Observatory at the Catholic University of Argentina. This marks the lowest recorded poverty rate since 2018.

The study also records a notable drop in extreme poverty, which declined to 6.8% from 11.2% year over year, indicating fewer households lack the income required to cover basic food needs.

The recent reduction in poverty is explained mainly by slowing inflation and a partial recovery in income, while the drop in extreme poverty is strongly linked to the impact of cash-transfer social programs. Without these policies, the extreme poverty rate would nearly double, even under current conditions, the report says.

Researchers point to two main drivers: a sharp fall in inflation (year-over-year inflation is now roughly 30%, versus levels above 200% two years ago) and an increase in the Universal Child Allowance implemented shortly after President Javier Milei took office. The allowance's real value was effectively doubled after it had been eroded by rapid inflation, providing direct relief to many low-income households.

Despite its modest size, the expansion of the child allowance partially eased economic hardship for a significant share of Argentine households, reducing overall poverty rates and, in particular, extreme poverty, the university report states.

Lucas Gobbo, a researcher at the National University of Avellaneda, said the improvements in poverty indicators are statistically significant but warned that short-term gains do not substitute for a long-term inclusive development strategy. He noted that lower socio-educational groups and many middle-income households remain vulnerable, while the top 25% of the population is largely insulated from economic hardship.

Gobbo and the report highlight persistent structural problems: high informality, elevated unemployment risk, and the absence of a coordinated state strategy to foster productive sectors and quality jobs. They also recommend a more decisive update to the minimum wage to help reduce vulnerability among low-income workers.

Source: Social Debt Observatory, Catholic University of Argentina; comments by Lucas Gobbo to UPI.

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