Argentine President Javier Milei’s claims of success in tackling inflation are being put to the test by local reports revealing a grim reality for the majority of people in the country. Despite Milei’s global tours boasting about his administration’s accomplishments, Argentina appears to be on the brink of a hyper-recession.
Here are the key indicators that shed light on the deteriorating living conditions under Milei’s leadership:
- Mass consumption plummeted by 14.5% year-on-year in May and 3.1% from the previous month, as reported by pollsters Focus Market. This decline, based on retail sales data from 756 points of sale nationwide, paints a bleak picture of the economic situation in Argentina.
- Focus Market Director Damián Di Pace noted a slight improvement in consumption levels in May but highlighted the disparity in sales performance based on the size of retail outlets. While large stores saw a significant drop in consumption, medium-sized supermarkets experienced a less severe decline.
- In the Buenos Aires Metropolitan Area (AMBA), mass consumption declined by 12.9% year-on-year and by 2.3% compared to April. The rest of the country also witnessed a sharp decrease of 15.5% year-on-year and 3.6% compared to April 2024.
- The Gini Index, a measure of income inequality, revealed a widening gap between the wealthiest and the poorest segments of the population. The top decile now earns 23 times more than the bottom decile, up from 19 times before Milei’s policies took effect.
- Per capita income disparities have also worsened, particularly affecting those in informal employment. The concentration of wealth among the top tiers of society has reached unprecedented levels, with the Gini Index hitting a historic high of 0.467 in early 2024.
- Despite Milei and Economy Minister Luis Toto Caputo’s reassurances, the “blue” dollar surged to AR$1,365, setting a new record high. The widening gap between the official exchange rate and the black market rate underscores the economic challenges facing ordinary citizens.
As Argentina grapples with escalating inflation and income inequality, Milei’s promises of prosperity seem increasingly hollow. The stark contrast between his rhetoric and the grim reality on the ground underscores the urgent need for sustainable economic policies that prioritize the well-being of all citizens. It’s time for meaningful action to address the deep-rooted issues that threaten the country’s economic stability and social cohesion.
