Buenos Aires Times

argentina Made by UCA Social Observatory

New report says poverty will reach 33% as result of devaluation

According to the Social Debt Observatory of the UCA Catholic University, the financial crisis has hit poverty even harder than before.

Saturday 11 August, 2018
Poverty might reach 33% of the population.
Poverty might reach 33% of the population. Foto:Cedoc

More Argentina News

According to the Social Debt Observatory of the UCA Catholic University, the financial crisis of the last three months has increased the ranks of those below the poverty line by around 1.5 million to reach just under 33 percent of the population, sharply up from 25.7 percent in March. While a third of Argentines are now impoverished, a 10th are destitute (almost half of this for cyclical reasons since UCA estimates structural extreme poverty at five to six percent).

“Two million citizens can’t afford the basic food basket,” Agustín Salvia, the head of UCA unit, said, trailing the report’s release next week “Based on our work, poverty reached a maximum of between 32 and 33 percent in the last decade because of the 2010, 2014 and 2016 devaluations. That means poverty would now be at one of its worst moments of the last 10 years.”

Salvia said the social situation in the country is similar to the one experienced in the 1990s.

“There’s a pattern of structural poverty that’s always present in Argentina. Even in the best economic moments, poverty isn’t lower than 25 percent,” he said.

“A quarter of the Argentine population is experiencing a bad economic situation,” said Salvia.

The UCA university expert said one out of every three homes in Argentina received social benefits, highlighting that while over the last 10 years the number of welfare programmes had increased, poverty levels had remained stagnant.

“A quarter of the Argentines remain outside the reach of social security [programmes]. Argentina is vulnerable – a third of the population doesn’t live well and isn’t protected,” he said.

Salvia explained that there are sectors among the poor that “don’t want to resolve their situations with social security but instead with a job.”

He added that “what’s coming next” in Argentina “won’t be easy.”

According to the INDEC national statistics bureau, an average family of a couple with two kids needed to earn 19,601 pesos in June to be considered above the poverty line, an increase of 4.1 percent compared to May. Meanwhile, in the case of ‘destitution,’ or extreme poverty, 8,246 pesos were needed, which represents a 4.9-percent increase.

The hikes exceeded June’s inflation rate, which reached 3.7 percent according to INDEC.



Top Stories

  1. 1Severe turbulence injures 15 on Aerolíneas Argentinas flight from MiamiSevere turbulence injures 15 on Aerolíneas Argentinas flight from Miami
  2. 2Julian Assange sues Ecuador for violation of 'fundamental rights'
  3. 3Peronist reshuffle: Solá, Moyano split from Massa to form CFK-friendly bloc
  4. 4Experts raise forecasts as inflation soars
  5. 5Uruguayan lawmakers pass law granting rights to trans people
  6. 6'Not worthy of rape' deputy says she fears for Brazil under a president Bolsonaro
  7. 7We’re all in the same boat
  8. 8The Saudis let the mask slip
  9. 9Building solid structures to engage our readers
  10. 10Nearly half the world lives on less than US$5.50 a day, says World Bank