Milei's so-called "Argentine economic miracle" crumbles in the figures: "He did not lift anyone out of poverty"

Javier Milei’s narrative of an Argentine economic miracle faces sharp contradiction from official statistics, which indicate he has failed to lift anyone permanently out of poverty. While the far-right president travels globally touting his achievements, data from the National Institute of Statistics and Census reveals a complex picture. During a speech at the New Economy Forum breakfast in Madrid, held at the Royal Grand Circle Casino, Milei claimed to have removed one-quarter of Argentines from deprivation. However, he has offered inconsistent figures for this achievement, citing numbers ranging from ten to fifteen million people within days of each other. Milei assumed office on December 10, 2023. At the close of that year, the institute reported that 41.7 percent of the population lived in poverty. Poverty in Argentina is measured by household income using a basic basket stricter than those used elsewhere in Latin America. In the final months of the previous center-left government led by Alberto Fernandez and Cristina Fernandez de Kirchner, monthly inflation exceeded ten percent. This surge was partly driven by mass distrust in the peso following Milei’s campaign promises to dollarize the economy and dismantle the central bank. Upon taking power, Milei implemented a fifty-four percent devaluation, among the largest in national history. Consequently, inflation hit twenty-five percent in December 2023 and twenty percent in January 2024. Poverty spiked to fifty-seven percent during this period. Milei attributes this fifteen-point rise to Peronist policies. As inflation stabilized around two percent monthly starting in 2025, poverty began to decline. The institute recorded the rate at twenty-eight point two percent in the second half of 2025 and thirty-two point three percent in the first half of 2026. Experts question these official figures. Hernan Letcher, director of the Center for Argentine Political Economics, stated that poverty increased again in the first half of this year. He noted that quarterly measurements would show a rate near thirty-four percent in the second quarter. Letcher accused the government of methodological abuse regarding the indicator, claiming it did not implement modifications agreed upon with the International Monetary Fund. Since late 2023, the statistical agency altered survey questions to better record family income, meaning social aid previously excluded from calculations is now included. Economists argue the basic basket is outdated because it relies on consumption surveys from 2004 and 2005. This design ignores structural changes in household spending, such as rising costs for electricity, water, internet, and transport. Another anomaly involves informal worker income. According to the state system, approximately 370,000 registered jobs were lost under Milei’s administration. Despite these indicators, Milei continues to attack critics. Speaking in Spain, he denounced President Pedro Sanchez as a dictator and blamed Kirchnerism for driving hundreds of thousands of Argentines to flee misery. He referred to opponents discussing the current crisis as fools. The country has entered recession again, yet the president maintains his rhetoric of success while facing electoral challenges abroad and domestic economic contraction.