An economist's analysis suggests that updating the consumption basket based on older spending surveys would reveal a significantly higher poverty rate in Argentina than currently reported by the government.
A recent analysis by Martín González-Rozada from the Universidad Torcuato Di Tella indicates that if Argentina's poverty measurement was updated using the consumption basket based on the 2017/2018 spending surveys, the poverty rate would be approximately 33.2% for the third quarter of 2025. This figure is notably higher than the 26.9% that the Argentinian government has been estimating. The debate surrounding poverty measurements in Argentina is increasingly focused on methodological issues rather than the actual trends, which have shown a marked decrease from the peak levels in early 2024.
The report highlights the importance of updating the consumer basket used to gauge poverty, particularly in light of the government’s decision to delay the update of the Consumer Price Index (CPI). This delay raises concerns about the accuracy of the poverty statistics being reported. The economist's findings suggest that without these updates, the reported decline in poverty may not reflect the true economic realities faced by many Argentinians.
In this context, the ongoing debate over poverty measurement methodologies is of critical significance. The discussion could influence government policy and public perception regarding the effectiveness of poverty alleviation strategies in Argentina. Accurate data is essential to address the challenges of poverty effectively and to implement the appropriate economic measures necessary to support those in need.
