Following the implementation of economic reforms under President Javier Milei, poverty in Argentina decreased to 38.1% by the end of 2024, down from 41.7% at the end of 2023 and a peak of 52.9% in the first half of 2024. This reduction, attributed to decreased inflation and improved incomes, resulted in approximately 1.6 million fewer people living in poverty compared to the end of 2023. While the government celebrates this drop, some experts caution that comparing data across different quarters can be misleading due to seasonal factors affecting employment, and that the improvement is partially due to increases in informal wages. Despite the positive numbers, challenges persist, including high child poverty (51.9%) and persistent concerns about income inequality.
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The World Bank approved a $2.05 billion funding package for Ukraine, including a $1 billion grant—the first disbursement from a new $20 billion U.S. loan fund backed by frozen Russian assets. This package, supplementing $1.05 billion in World Bank financing enhanced by Japanese and British guarantees, aims to bolster Ukraine’s financial stability and support crucial economic reforms. These reforms encompass various sectors, including railways, energy, agriculture, and banking, and are designed to foster sustainable growth and EU accession. The funding will provide budget support to the Ukrainian Finance Ministry while promoting policy changes to strengthen the economy.
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Argentina’s inflation has dramatically slowed to 2.7% in October, marking the lowest rate in three years, a significant victory for President Javier Milei’s libertarian government. This achievement, which follows a year of drastic economic reforms, demonstrates a crucial step in Milei’s fight against the country’s debilitating economic crisis. Despite the government’s success in bringing inflation down, ordinary Argentines continue to grapple with the effects of the radical economic overhaul, which included the elimination of generous energy subsidies. The government’s aim is to further reduce inflation below 3% by the end of the year, a goal they have now achieved.
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John Q. Hosedrinker