🚨 Breaking News: Extreme Poverty in Argentina Plunges to 7.4% Amid Wage Growth Surge

📉 Key Takeaways

Extreme poverty in Argentina has dropped dramatically—from 18% to just 7.4% over the past year .

This decline follows a period of hyperinflation, after which price increases have now slowed to around 1.6% monthly in June 2025 .

Real wages in the private sector saw a 10.4% increase between December 2023 and May 2025—finally outpacing inflation .

✅ Why It Matters

1. A Stunning Turnaround

Argentina’s extreme poverty has been halved thanks to sweeping economic reforms under President Javier Milei—transformations many are calling a genuine economic revival. This level of improvement is unprecedented in recent decades.

2. Wage Power Triumphs

With real wages now growing at ~10% year-over-year in the private sector, Argentines are seeing true income gains—marking a critical shift after years of eroded purchasing power.

3. Inflation Tamed

After soaring over 200% annually in 2023, inflation has dropped below 2% monthly—a major stabilization success under Milei’s reforms. This price control has underpinned the poverty reduction.

🧭 Context & Nuance

From Crisis to Recovery: When Milei took office in late 2023, poverty spiked above 50% and extreme poverty hit over 18%. The recovery since then highlights both the depth of the crisis and strength of the turnaround .

Private vs Public Reality: Real wage growth is focused on the private sector—public-sector salaries and social program recipients have not seen the same boost .

Fragile Gains: While millions have climbed above the extreme poverty line, about 9 million Argentines still live in poverty. Informal jobs remain risky, and many sectors continue to struggle.

Economic Breakthrough in Argentina: Extreme Poverty Plunges to 7.4%, Wages Surge Past Inflation Under Milei

Blog Summary (optimised for SEO):

Argentina has recorded a monumental drop in extreme poverty—from 18% to just 7.4% in the past year—fuelled by double-digit real wage growth and a major slowdown in inflation. Privately employed Argentines have seen real incomes rally by 10.4% year-on-year, while inflation has stabilized below 2% monthly. While public sector and informal workers still face challenges, this marks a historic turnaround under President Javier Milei’s economic agenda.

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"Argentina’s extreme poverty drops to 7.4%, real wages up 10.4%, as inflation cools—an economic turnaround under Javier Milei’s reforms."