The numbers speak for themselves: 57% of Argentine families is struggling in a distressing economic scenario, with monthly income that does not exceed 207 dollars. This gloomy panorama emerges from a report prepared by Focus Marketwhich analyzes the constant decline of purchasing power of the argentine peso since its implementation as legal currency until today.
Damian Di PaceDirector of the Consulting Firm, highlights that Argentina is in a historical moment in which politics has demanded sustained efforts from society, increasing taxes to balance the accounts of a deficit State. However, instead of cleaning up public finances, this policy ended up having a negative impact on companies and households, adding moren inflation tax and further deteriorating the local currency.
The report compares the average income of three deciles: in 2013 and 2023. The highest decile went from US$2,932 US$744, a drop of 75%. The next decile went from US$1,743 US$358, a drop of 81%; and the lowest one went from US$1,096 US$209a fall of 81%.
Income inflation: how they fell
The report also compares the average income of a typical family with 2 adult members and 2 children in 2023. A family with average income in decile 7 (equivalent to $150,218) covers 100% of the Basic Food Basketbut No It covers the Total Basic Basket, that is, the rental, or the Total Basic Basket plus the rental and maintenance of the car.
“The Economic politics implemented in recent decades have been an important factor in this deterioration. Inflationeconomic instability and the high tax burden have contributed to Argentines’ income losing value,” highlights Di Pace.
Comparison between 2023 and 2022 shows a decrease 14% in the average income of the highest decile, and a drop of 18% for the next decile, which represents 27% of the population. Finally, the remaining 57% of the population had an average income of US$272 in 2022, which has decreased to US$209 in 2023.
The loss of purchasing power translates in a significant deterioration of the living conditions of Argentine families.
On the other hand, the wealthiest families, With an average income of $257,638, they can cover both basic baskets, but they still lack 49% to cover rental expenses and 59% to include car maintenance.
Even taking an average family income of $123,782, which is enough to cover the Basic Food Basket, an increase of 71% would still be needed to cover the Total Basic Basket, 75% to add rent and 79% to include car maintenance.
The survey concludes that the economic policies of recent decades have led Argentina to a state of stagnation, where the income of the population has been seriously eroded.
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