Nearly half of Argentine households, 48%, had to resort to some economic strategy to make ends meet during the second quarter of 2025. A report by the Instituto Argentina Grande (IAG) revealed that the most affected sector is the middle class, where the index of households that used these strategies rose to 53%.
The pressure on the middle class is linked to the sharp increase in the cost of public services following the reduction of subsidies. Expenses for services, which in November 2023 represented 4% of an average salary, will reach 11% by 2025, demonstrating a significant decline in purchasing power.
To meet their needs, 35% of households used part of their savings, a percentage that rose to 40% among the middle class . In addition, 9% of households sold personal belongings as an extra measure to sustain consumption.
Eighteen percent of middle-class households have outstanding bank debts, a figure higher than the 12% in lower-income sectors. This phenomenon occurs against a backdrop of record-high delinquency rates on personal loans, which reached 9.1%, the highest level since official records began.
Alongside the household crisis, a report by the Argentine Industrial Union (UIA) indicated that 47.5% of industrial companies reported difficulties in meeting at least one of their current payments. 29.3% of firms admitted to being behind on tax payments, and 26.7% are no longer paying their suppliers, forced to "choose what to pay" in order to survive.
40.3% of companies reduced their activity levels and 21% cut their workforce. In this regard, 95.2% of companies project that they will only reach their optimal production level in 2026 or later.
The revelation that almost half of Argentine households must resort to savings and debt to cover expenses demonstrates the economic and social collapse in the country, a direct result of the adjustment policies implemented by the government of Javier Milei.
The brutal increase in the cost of public services and record delinquency underscore the severe deterioration of purchasing power, with the crisis exacerbated by the industrial contraction.
Lenin's Dumbbell - 4day
Hopefully the US sends even more aid and stretches itself out even more. Good luck to the good folks of Argentina, what they're facing is likely coming to all of us sooner rather than later
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Crisis in Argentina: 48% of households go into debt to pay for services
https://www.telesurtv.net/crisis-argentina-48-hogares-deuda-servicios/Nearly half of Argentine households, 48%, had to resort to some economic strategy to make ends meet during the second quarter of 2025. A report by the Instituto Argentina Grande (IAG) revealed that the most affected sector is the middle class, where the index of households that used these strategies rose to 53%.
The pressure on the middle class is linked to the sharp increase in the cost of public services following the reduction of subsidies. Expenses for services, which in November 2023 represented 4% of an average salary, will reach 11% by 2025, demonstrating a significant decline in purchasing power.
To meet their needs, 35% of households used part of their savings, a percentage that rose to 40% among the middle class . In addition, 9% of households sold personal belongings as an extra measure to sustain consumption.
Eighteen percent of middle-class households have outstanding bank debts, a figure higher than the 12% in lower-income sectors. This phenomenon occurs against a backdrop of record-high delinquency rates on personal loans, which reached 9.1%, the highest level since official records began.
Alongside the household crisis, a report by the Argentine Industrial Union (UIA) indicated that 47.5% of industrial companies reported difficulties in meeting at least one of their current payments. 29.3% of firms admitted to being behind on tax payments, and 26.7% are no longer paying their suppliers, forced to "choose what to pay" in order to survive.
40.3% of companies reduced their activity levels and 21% cut their workforce. In this regard, 95.2% of companies project that they will only reach their optimal production level in 2026 or later.
The revelation that almost half of Argentine households must resort to savings and debt to cover expenses demonstrates the economic and social collapse in the country, a direct result of the adjustment policies implemented by the government of Javier Milei.
The brutal increase in the cost of public services and record delinquency underscore the severe deterioration of purchasing power, with the crisis exacerbated by the industrial contraction.
Hopefully the US sends even more aid and stretches itself out even more. Good luck to the good folks of Argentina, what they're facing is likely coming to all of us sooner rather than later