More than half of Argentina’s 46 million population is now living in poverty, new figures indicate. The poverty rate skyrocketed to 52.9% in the first half of 2024, surging from 40.1% one year earlier, according to the government’s INDEC statistics agency.

Why it matters: This marks a steep jump from 41.7% at the end of 2023 and more than twice the predicted 26% 7 years ago—severely impacting Argentinian people with repeated economic crises.

• As poverty persists, the social safety net weakens.
• Protest movements have also grown against spending cuts, as locals reject the pull back of government programs.
• Argentina’s inflation, now running at more than 230% annually, is among the worst in the world.

Argentina’s foreign currency deposits have increased to nearly $8 billion since President Javier Milei took office in December. The economy shrank 1.7% in the second quarter of the year compared to the previous three-month period, per Argentina’s statistics agency, pushing the nation deeper into recession. Latest central bank data shows total foreign currency deposits now exceed $24 billion, up from around $16.5 billion when Milei took power amid a major economic crisis. “The government inherited a disastrous situation,” Milei’s spokesperson Manuel Adorni told reporters. “They left us on the brink of being a country with essentially all of its inhabitants poor.”

Runaway inflation has become shocking for middle-class Argentines who are forced to cut back on spending and burn through their savings. The economy has contracted 3% so far this year. Government surveys reveal both the informal job market and formal workforce have hemorrhaged hundreds of thousands of jobs since Milei took office. In the shipping sector, Milei has cut down on subsidies for transport, fuel and energy in his plan to bring inflation down and reduce government expenditure. “In eight months he can’t fix the mess they made in 20 years,” said Débora Galluccio, a 48-year-old legal expert who lost her job in Congress during the previous administration. “It’s hard, but we manage as best we can.”

By the numbers: Customers in Argentina have averaged 31 days beyond terms, with 50% of respondents saying payment delays are staying the same, per the FCIB Credit and Collections Survey. The most common causes for payment delays are central bank issues (50%), customer payment policy (50%) and government approval (50%).

What Survey respondents are saying:

• “Obtain financial statements on your customers and backstop sales with credit insurance.”
• “Start early building a relationship with your customer, and include your salesperson. You’ll make a team and teams work together.”
• “It is important to know customer’s payment process to avoid misunderstandings or delays due to administrative issues.”

What’s next: Our September Survey is now open and covers Brazil, Canada, Peru and Saudi Arabia. Click here to take the survey now—and be sure to share the link with your credit and collections network.