Argentina has recorded an unprecedented reduction in poverty levels, which the government attributes to the slowdown in inflation and macroeconomic stabilization. According to official data, the poverty rate fell to 27.5% in the third quarter of 2025, the lowest level since mid-2018. This represents a decrease of 10.8 percentage points compared to the same period in 2024 and a cumulative drop of 27.3 points since President Javier Milei took office. Inflation, which peaked at 211% in 2023, decreased to 117% in 2024 and is estimated to be around 30% for 2025. The extreme poverty rate also fell to 5.4%, a reduction of 3.8 percentage points. The government claims this achievement was realized without an expansion of social spending, but through macroeconomic stabilization and the elimination of distortions that had systematically eroded the incomes of the most vulnerable sectors. Analysts, however, warn that the main challenge ahead will be sustaining these social gains in a scenario of an incipient economic recovery. The government insists that the continuity of the disinflation process and the consolidation of economic growth will be key to further reducing poverty in 2026.
"This is an unprecedented reduction in terms of speed and magnitude, which the government attributes mainly to the drastic slowdown in the cost of living and the macroeconomic ordering begun at the end of 2023," the report states.
