A study published in the Argentine press yesterday Sunday indicates that more than 57% of the population of Latin America’s fourth-largest economy fell into poverty in January.

According to data from the Observatory of Social Debt in Argentina (Observatorio de la Deuda Social Argentina) of the Catholic University (Universidad Católica Argentina, UCA), published in the newspaper Ámbito Financiero, 57.4% of Argentine citizens, or more 26 million people were below the official poverty line last month.

In January, according to the same source, 15% of the population (7 million citizens) lived in absolute poverty.

Agustin Salvia, the Observatory’s director, pointed out in statements to the morning newspaper La Nación yesterday that this study is a “statistical simulation” based on data “from the third quarter” of 2023. However, “I don’t think we are very far from reality,” he added.

If true, these are the highest figures in at least 22 years.

“If inflation slows down, there will be a rapid improvement (of the situation). If not, we will be faced with social disaster,” warned Mr. Salvia in his remarks to the Nation.

These estimates appear after the first full month after the presidency of the country Javier Millay, who applies “shock therapy” in the field of economic policy.

In December, poverty and absolute poverty rates stood at 49% and 14% respectively, according to the UCA Observatory.

After a 54% devaluation of the peso, Argentina’s currency, as well as the “liberalization” of prices, which rose sharply, inflation reached 20.6% in January and 254.2% year-on-year, and incomes dissipated .

In 2023, the last year of the government of Alberto Fernandez (center left), it closed with inflation at 211%, 25% in December alone.

According to official statistics, 45% of Argentine citizens are unable to meet basic needs.

The ultra-liberal new president Miley (far right) has blamed the traditional political elite, which he calls “caste”, for poverty. “The true legacy of the caste model: six out of ten Argentines are poor. The destruction (of the economy) in the last hundred years has no comparison in the history of the West,” he argued via X (the former Twitter).

He expects the economy to recover in about three months. According to him, we will observe a “V” type course, i.e. initially a contraction, with “the hardest stage towards March and April”, when “we will reach the bottom”, then “we will start to recover”, he assured last week.

On Friday, Argentina’s economy ministry announced that in January the government recorded a surplus of 518.41 billion pesos ($620.85 million). It is the first time a surplus has been announced since August 2012.