According to UNICEF, peak poverty was recorded in 2024

Sebastian WaygraisThe economist and UNICEF Argentina social inclusion and surveillance expert said vulnerable households had died. From 48% in 2024 to 31% this year. in a dialogue with fonte vecchia modeby internet tv and radio profile (AM 1190) explained that while the bottom sector is showing recovery due to “stabilization of inflation” and improvement in unrecorded incomes, the middle sector is “maintaining consumption with debt”.

Sebastián Waisgrais is an economist and social inclusion and monitoring expert at UNICEF Argentina. For more than 10 years, he has been associated with UNICEF, playing a key role in the field of monitoring and evaluation of the situation of children and adolescents. He is an expert in analyzing the social situation of children in Argentina, using economic and social data to advocate for better public policies and stronger protection of children and youth in the country.

UNICEF confirms reduction in child poverty in Argentina

We are consulting on UNICEF’s report on measured poverty reduction and warnings that although poverty has been reduced, the middle class is becoming poorer. There is always debate about how to measure poverty and how to measure relative poverty.

In fact, UNICEF has been conducting a series of surveys since 2020 reporting on the economic situation and income of households with boys and girls. This study shows that it is consistent with the scenario that was already happening last year. Poverty reduction in essentially the most vulnerable sectors.

There are probably three core pieces of data. The first of these is Improving the weakest sectors. The indicators we measure and are concerned about relate to families who are unable to cover their current expenses, the basic expenses essential to supporting their children. This data was taken from 48% in 2024 31% This enabled more families to face childhood expenses and restored access to essential consumption. Households that stopped buying groceries due to lack of money will also improve, 52% to 29%. That’s a good trend. Of course, let’s still think that way. 30% of households where boys and girls live have dietary restrictions due to lack of money. There are still challenges.

The second question relates to these challenges you mentioned in relation to the intermediate sector. The intermediate sector is not affected in this way. Debt increases as income does not improve. More households with formal debt 31%the highest level since 2020, and adding in virtual wallets and informal loans from family, this 45%. This means that due to lack of resources, the middle class is turning to debt as a solution and increasingly using credit cards to buy food.

I lived in Brazil, and the word that caught my attention was “powerless.” Unlike Argentina, in a society where everything is financed by banks, it would be like people who can’t pay their bills. Are we moving in that direction, towards total control of society by banks? Because even those who receive subsidies against poverty do so through the banking system and virtual wallets, which ultimately fosters debt at the same time?

yes. In terms of policy effectiveness, we are well on our way. Currently, 100% of both subsidies and remittances are done through banks. And this somehow allows access to greater resources, such as loans. What actually happens is that it hits in a different way. In some ways it hurts the more vulnerable sectors and in other ways it hurts the intermediate sectors. The fundamental problem we have is that there are three elements. on the one hand, The income of unregistered people has improved.. These revenues increase far more than inflation. income protection by Universal Child Allowance (AUH) Stabilizing inflation has recently become a priority. High levels of inflation erode the incomes of people who cannot protect themselves or reflect on their paychecks. This means that the poorest households will be hit hardest, but they will be the first to feel relief when the situation stabilizes, as it has now. Restructuring of bonds such as AUH increases the purchasing power of the most vulnerable sectors.

This does not happen in the intermediate sector and does not reach the same extent. Transfers and subsidies cushion the shock, but Official salaries are adjusted with a certain lag compared to historical inflationand they are also the households that pay for rent, transportation, health, and education. Expenditures do not benefit directly from the compensation program. In other words, consumption is supported by debt. Perhaps this is the key to explaining these two situations.

Less savings and leisure time, more second brands: A new analysis of the self-identified “middle class”

When you say that some metrics have gone down, or “a certain metric has gone down from 50% to 30%,” when did it go down compared to when?

This study was conducted from 2020 to the present. It ended in August 2025, but I think we need to keep an eye on trends.

And August 2023?

It also goes down. In August 2023, it will still be 33-34%, which is the lowest since 2022. It looks like we’re in a pre-pandemic situation.

Has it returned to its pre-Mirai state?

In some indicators, he fell before Millais. There are some metrics that improve even faster.

33% of them are from 2020. 48% was produced by Millay.

The devaluation that led to poverty, which caused 8 million boys and girls to live in poverty, was at its highest point in 2024 after the devaluation. There has been a recovery since this year, and it has been recovering since almost before the devaluation.

Therefore, the lowest-ranking sectors have recovered to the situation before the Millais devaluation, and the middle-ranking sectors have become even more impoverished.

Yes, the middle sector is even poorer. And I also mentioned the risks to you. There are three factors that explain this. One is stabilization of inflation, which is expected to continue. Salary positions do not occur equally between registered and non-registered, formal and informal. And that’s important information being discussed in the 2026 budget. Universal child benefit automatic transfer.

autonomous mobility, which the executive branch is considering abolishing; Increases will be made on a discretionary basis. Therefore, even in a situation where inflation is falling, keeping the updated rules for last month’s inflation in place will allow the AUH to continue fulfilling its raison d’etre of protecting those who need it most. Hopefully one day you won’t need it, but keep the following in mind: Without AUH, one million more children would be living in poverty today.. The protective capacity of this policy is remarkable. Therefore, in this fiscal consolidation scenario, we believe it is highly desirable to maintain flexibility in allocation.

TV/FF