According to the latest official surveys, Argentina is among the countries with the lowest minimum wages in Latin Americaonly behind Nicaragua, Haiti, Cuba and Venezuela. The situation worsened after the mid-September devaluation and rising inflation.
The region’s residents with better salaries, such as Costa Rica, Uruguay and Chile, They double the minimum wage received in the country.
On the opposite side, the countries with the best salaries in the region are Costa Rica (US$714), Uruguay (US$594), Chile (US$470), Ecuador (US$460) and Mexico (US$456). For its part, Brazil, the region’s main economy, is located in the middle of the table and below (US$282).
Falling wages, record inflation: another alarm in Argentina
Regarding inflation, another of the economic indicators that sets off alarms, Argentina once again registered the highest in the world in February, above Lebanon and Venezuela. The gap is growing on the podium and international perspectives anticipate that There will be no change in that trend.
In February, Argentina registered an increase in consumer prices of 13.2% and 276% in one yearaccording to the National Institute of Statistics and Censuses (Indec).
The latest data from Lebanon corresponds to January, with a 177% annuallyMeanwhile in Venezuela the Finance Observatory (OVF) recorded a deflation of -0.5% in one month and a rise of 85% in 12 months. Meanwhile, the Central Bank of the Nicolás Maduro regime reported a monthly increase of 1.2% and an annual increase of 75.9 percent.
Why do salaries continue to fall in Argentina?
According to a report by the consulting firm Focus Marketthe income of Argentines, measured in dollars, is today approaching the levels of exit from the convertibility regime.
“Inflation has not given a break in the last 13 years and in the accumulated salary has dropped sharply in the face of price variation in the economy,” he explained Damian Di Pacedirector of the consulting firm.
“Without Argentines who take the risk of investing their savings there is no production or employment. Without employment and greater growth in production it is impossible to improve income. With a State that finances its poor and inefficient administration of the public sector, with taxes that fall on those who risk, and monetary emission that falls on the loss of purchasing power of our currency, Risk aversion has been increasing in recent times. Nobody invests or produces“added the analyst.
Falling salaries: how it affects each Argentine province
Another point that Focus Market pointed out is how the economic crisis affects the average per capita family income on a monthly basis in each province.
In the Buenos aires citythe average per capita family income is US$213, followed by Tierra del Fuego with US$203 and Jujuy US$155. All of these provinces receive incomes above US$100.
The most alarming numbers occur in provinces such as Chubut, Corrientes and Formosa who live with US$59, US$69 and US$76 per month respectively.
When evaluating the daily income per capita in the different corners of the country, it is observed that in CABA and Tierra del FuegoFor example, they have US$7.12 and US$6.78 respectively. However, provinces like Chaco and La Rioja they live on average with US$1.97 and US$2.33 daily respectively.
“The devaluation of the peso against the dollar of 54% in the official wholesale exchange rate, the delay in monetary issuance and the high uncertainty, the departure of controlled prices in the economy and the correction of public service rates plus the adjustment to new values of private services are leading to an even greater loss of income for Argentines in the first stage of this government,” they indicated.
Source: Ambito
