Economic stabilization efforts in Argentina are beginning to yield concrete results for the country's most vulnerable families, with the children's rights organization UNICEF announcing a notable drop in poverty rates among households with children and adolescents. In a related indicator, only 29% of households now forego certain foods due to budget constraints, down from a peak of 52% last year. UNICEF attributes these gains primarily to three interconnected dynamics. First, salaries in the informal sector have increased significantly, providing a lifeline for poor workers who support many households with children. Second, the Universal Child Allowance (AUH), a key social transfer program, has benefited from automatic adjustments, maintaining its value at around 98% of the basic food basket even amid a general fiscal tightening. Third, the overall slowdown in inflation has disproportionately benefited low-income groups, where fixed incomes like pensions and benefits are recovering faster relative to rising costs. In a broader context, these revelations come as Argentina navigates President Javier Milei's libertarian reforms, which have tamed three-digit inflation to single digits but at the cost of austerity measures. This convergence of data underscores a national trend: after years of double-digit inflation eroded purchasing power, policy measures focused on transfers and minimum wages are beginning to hold back the tide. However, UNICEF's findings temper the optimism with stark warnings. Although targeted childhood programs like the AUH have seen real budget increases—a rarity amid general cuts—experts urge sustained investment to close persistent gaps. The child poverty rate, in particular, stands at 46.1%, down 21 points from the previous semester, while extreme poverty fell to 10.2%, losing 17 points. Despite these advances, structural problems persist, including an alarming 52% rate of non-payment of child support, unchanged from previous years and directly impacting child nutrition and stability. Among adolescents, new alerts are emerging: bullying increased from 25% to 41%, affecting nearly a million young people and straining mental health resources. Furthermore, 40% of adolescents admitted to having played online with real money in the last month, a phenomenon that demands urgent regulatory and preventive interventions. Household debt levels have risen from 23% to 31% in the last year, encompassing formal bank loans, credit cards, lenders, and even the social security agency ANSES. When including informal debt through apps, digital wallets, or personal networks, this figure rises to 45%. This dynamic, warned, makes them extremely susceptible to future reversals, potentially reversing the hard-won gains. While formal salaries lag behind inflation, and essential expenses like rent, transportation, health, and education exert relentless pressure, leading them into debt to sustain consumption, families now report greater ease in managing child-rearing costs, including school supplies, clothing, and recreational activities. Access to critical health services has also improved: the proportion of households citing financial barriers to medical or dental consultations fell by eight percentage points. Meanwhile, while low-income households are breathing more easily, middle-class households, historically protected from direct subsidies, are reeling under growing debt pressures. Four out of ten families have defaulted on utility payments, and 16% face specific difficulties with credit cards. "When inflation stabilizes, relief comes first to the poorest households through the restoration of fixed incomes like the AUH," said Sebastián Waisgrais, UNICEF's social inclusion and monitoring specialist. "Protecting incomes remains key, but middle-class challenges persist." As the 2026 elections approach, the survey's dual narrative—progress interwoven with peril—could shape debates on social equity. UNICEF's representative in Argentina, Rafael Ramírez Mesec, emphasized the survey's role as a vital check: "This tool, in place since 2020, illuminates the realities lived by childhood and adolescence. Agravating the tension, four out of ten families have defaulted on utility payments, and 16% face specific difficulties with credit cards. The incidence of household debt has risen from 23% to 31% in the last year, encompassing formal bank loans, credit cards, lenders, or even the social security agency ANSES. This improvement, especially pronounced in lower-income sectors, points to a fragile but encouraging recovery amid the country's sustained fight against inflation and fiscal constraints. The survey, which monitors the economic and social conditions of childhood since 2020, paints a picture of moderate progress in essential areas. The 2025 budget allocates modest growth to these transfers, but UNICEF calls for expanded monitoring, safeguards against debt, and comprehensive support for adolescent risks such as gambling and bullying. Dealing with the 2026 elections, the dual narrative of the survey—progress interwoven with peril—could shape debates on social equity. One in ten has even canceled private health insurance or changed schools for their children due to cost. Citroën highlighted the vulnerability of these middle-stratum families: "They lack the same access to buffers like transfers or subsidies that protect the poor from economic shocks. This dynamic, warned, makes them extremely susceptible to future reversals, potentially reversing the hard-won gains. Beyond the economy, the survey reveals deeper social fractures affecting youth well-being. One in ten has even canceled private health insurance or changed schools for their children due to cost. Citroën highlighted the vulnerability of these middle-stratum families: "They lack the same access to buffers like transfers or subsidies that protect the poor from economic shocks."
