MercoPress. South Atlantic News Agency

Poverty in Argentina reaches 44,2% of the population, with special impact on households with children

During the last twelve months, poverty, measured based on income climbed from 40,8% to 44.2%, which amounts to another two million Argentines

Some 18 million people, 44,2% of the Argentine population live in poverty conditions, and indigence trapped 10,1%, during the third quarter of 2020, according to the Argentina Catholic University Social Debt Observatory.

During the last twelve months, poverty, measured based on income climbed from 40,8% to 44.2%, which amounts to another two million Argentines. However the Social Debt Observatory points out that 13,7% of the population, some 5,4 million have joined the ranks of the poor in the period.

Likewise indigence jumped in Q3 from 8.9% in 2019 to 10,1% this year. The official stats office of Argentina recorded 40,9% of poverty during the first half of the year, which is the latest figure to be released.

The reasons for the increase can be found in the ongoing and deepening economic situation (Argentine GDP remains stagnant since 2012) plus the Covie 19 pandemic which bashed particularly strong informal employment, over 35% in Argentina. However it must also be said that different government support programs, including food stamps helped to further contain the situation.

“The poverty index based on income is highly volatile, and this has emerged once again”, said Agustin Salvia, head of the Social Debt Observatory. “Special end of the year bonus bring down the index, but equally significant an inflation or Peso devaluation impact in the opposite direction”.

Salvia explained that the poverty index had an erratic performance this year, “37% in the first quarter, 50% in the CJ second, and now 44%” Furthermore in the third quarter “we had the end of the year bonus, plus the family income support. Besides for the informal sector there was a recovery of activity, and thus income”

Nevertheless Salvia estimates that despite a tepid economic stabilization, “the economy is not recovering at the speed anticipated, social support programs will be cut, so the poverty index in the fourth quarter can be expected to climb somewhere between 45% and 48%”

Another detail of the Social Debt Observatory is that children and adolescents are the most vulnerable population tier, that is between 0 and 17 years and youngsters, from 18 to 29. In effect during the third quarter, 64,1% of children and adolescents lived in homes with incomes below the poverty line.