According to figures released on September 24, 32.3 percent of Argentina's population lived in poverty during the first half of 2026, a number that continues to rise. This statistic has become a point of contention between supporters and critics of President Javier Milei, with some arguing it reflects the success of his economic reforms and others seeing it as evidence of their shortcomings. The poverty rate had been 41.7 percent as of December 10, 2023, according to the Indec, Argentina's official statistics institute. It climbed to 52.9 percent after six months of Milei's policies, reaching the highest level since 2004. However, it then dropped to 38.1 percent in the second half of 2024 and further to 28.2 percent in the second half of 2025 before rising again at the start of 2026. David Copello, a political science professor and Argentina specialist, explained that Milei's economic policies included devaluing the Argentine currency, which led to a sharp increase in inflation. However, a later austerity policy helped reduce inflation and temporarily lowered the poverty rate. Copello emphasized that inflation and poverty are closely linked, particularly in the short term. He also raised concerns about the reliability of the Indec's poverty measurement, which uses two "baskets" to calculate the figures. The Canasta básica total includes both food and non-food goods and services, while the extreme poverty rate is based only on the food basket. These criteria, established in 2004, do not account for recent changes in consumption patterns, such as the growing importance of phone and internet plans, electricity, and real estate. The Argentine Industrial Union (UIA) reported that the country's industrial sector is 10 percent below its 2022 levels, with some sectors experiencing drops of 25 to 30 percent. Since August 2023, the industry has lost 90,000 salaried jobs, and unions estimate that 30,000 small and medium enterprises (SMEs) and 300,000 jobs have been lost since Milei's election. Unemployment has risen from 5.7 percent in 2024 to 7.5 percent this year. Copello noted that while economic growth has been driven by wealth-producing sectors like mining and agriculture, it has not led to job creation, increasing inequality. He also warned that the economy depends on foreign currency injections, which could become unstable and trigger a crisis if investor confidence declines. Despite a drop in inflation, Milei's policies have faced criticism for their impact on employment and poverty levels. The president predicts a 4.1 percent growth in gross domestic product for 2027, but the UIA and other economic indicators suggest a more pessimistic outlook. The current economic situation is characterized by rising poverty, increasing unemployment, and a heavy reliance on external factors. The immediate future appears uncertain, with risks of a potential recession looming on the horizon.