Buenos Aires, Argentina: Diego Nacasio, 43, works full time as a salesman at a big ironmongery store in Florencio Varela, a metropolis within the larger Buenos Aires space. He says he doesn’t want a calendar to know what day of the month it’s. By the point his wage and that of his spouse, who additionally works full time in a store, run out, it’s across the fifteenth.
From then on, they search for further jobs, discover issues to promote, use their bank cards, and get small loans to pay for fundamentals, together with meals, till the following paycheques arrive.
“I’ve by no means skilled something like this,” Nacasio advised Al Jazeera. “Over the previous 25 years, now we have labored onerous, and our jobs allowed us to construct a home from scratch, purchase a automobile and provides our 17-year-old son a good life. Now, now we have higher jobs than we did then, and nonetheless can’t even afford meals for the entire month.”
“Residing on credit score places you in a really harmful cycle. It’s very straightforward to fall behind with funds, after which it’s a matter of chasing your personal tail. Most individuals I do know are in the identical scenario. We live in a relentless state of stress and nervousness, and it looks like there’s no manner out.”
Nacasio’s story has develop into more and more widespread in Argentina, the place almost half of the folks say they’re utilizing financial savings, promoting belongings or borrowing cash from banks or relations to cowl fundamentals, based on a report by Argentina Grande primarily based on the most recent official figures accessible. One other report, from Fundacion Pensar, discovered that 63 % of Argentines have minimize down on actions or providers to make ends meet.
“The present scenario in Argentina is extraordinarily regarding. It’s notably worrying to see that even individuals who have one or a number of jobs are getting loans to not purchase a home, a automobile or white items [appliances], however to purchase meals,” Violeta Carrera Pereyra, sociologist and researcher on the Argentina Grande Institute and one of many authors of the report, advised Al Jazeera.
A story of two cities
Argentina’s President Javier Milei, who took workplace in December 2023, says his austerity financial plan, primarily based on attaining fiscal stability whereas build up reserves of United States forex via drastic cuts to public spending, has revitalised the financial system and lifted thousands and thousands of individuals out of poverty. He’s backed by the Worldwide Financial Fund, which, regardless of Argentina’s report ranges of overseas loans, tasks an financial progress of 4 % in 2026 and 2027.
However a better take a look at the figures reveals a distinct, extra sombre, image.
Whereas financial exercise in Argentina has elevated general, progress has been uneven. In November 2025, the newest month for which information is offered, sectors comparable to banking and agriculture noticed progress, however manufacturing and commerce skilled sharp declines, with many factories and retailers closing as a consequence of falling demand. Consumption, notably of meals, has been falling, with a 12.5 % drop reported by unbiased meals retailers.
Then there’s inflation, a key variable that in Argentina must be saved at bay as a way to entry important overseas credit score.
Whereas Milei’s shock financial plan managed to considerably cut back inflation from record-high figures when he first took workplace in late 2023, consultants say his administration has taken some controversial measures to maintain it low. This consists of forcing salaries to stay stagnant and underneath the speed of inflation, and opening the nation as much as cheaper imports. These insurance policies have left many with out cash to spend and compelled hundreds of factories and small companies to shut.
Critics additionally say inflation figures will not be consultant of actual worth fluctuations. The software used to measure inflation in Argentina, a pattern basket of products folks devour, was developed in 2004 and doesn’t mirror present consumption patterns, together with the share that objects like electrical energy and gasoline – two areas which have seen worth hikes significantly larger than inflation – signify in folks’s actual spending habits.
Carrera Pereyra says that figures additionally present that the speedy adjustments in Argentina’s financial system have widened inequalities.
“On the one hand, we see that some sectors are capable of devour extra, so we see an increase within the gross sales of properties, automobiles, motorbikes, some on account of the opening of imports,” she stated. “However however, objects like meals and medicines are reducing. So, some folks should purchase extra issues than earlier than, whereas others are struggling to place meals on the desk.”
An impediment course
Many Argentines who spoke with Al Jazeera stated that making ends meet has develop into nothing wanting an impediment course. Juggling a number of demanding jobs, promoting used objects comparable to clothes, borrowing from relations, looking for shark loans and discount looking have develop into a daily a part of each day life.
“Searching for meals has develop into a job in itself,” stated Veronica Malfitano, 43, a instructor and commerce unionist, whose wage was minimize by 1 / 4 when Milei slashed public spending. “I workforce up with relations or folks I work with, and we purchase in bulk. I exploit my bank card or get small loans. This month, for the primary time, I’ve solely paid the bank card’s minimal, one thing I had by no means finished earlier than. It’s all very demanding. Everyone I do know is in the identical scenario.”
Analysis confirms Malfitano just isn’t alone. Practically half of grocery store purchases in Argentina are paid with bank cards, a report, based on current official information.
Each borrowing and default charges have elevated. It’s estimated that round 11 % of non-public loans are unpaid, the very best fee for the reason that Central Financial institution of Argentina started maintaining information in 2010, based on Central Financial institution information.
Griselda Quipildor, 49, who lives together with her husband, two daughters and two grandchildren, says that regardless that a number of folks in her household work, cash often runs out by the 18th of each month they usually have to start out taking loans.
“At the beginning of the month, we pay money owed, the payments after which the cash runs out and now we have to start out borrowing once more. It’s an infinite vicious circle, one which may be very troublesome to get away from. We borrow from folks we all know and folks we don’t know. It wasn’t like this earlier than.”
Lucia Cavallero, an analyst, economics professional, and member of Movida Ciudad, advised Al Jazeera that regardless that Argentina’s financial issues are longstanding, their affect on folks’s properties is worsening.
“Debt has lengthy been a major problem in Argentina, and it has now develop into a disaster,” she stated. “The proliferation of casual lenders has created a harmful scenario, leaving many individuals with no different choices.”
In response, a political get together has proposed a invoice that might assist folks in lower-income sectors unify their loans and apply for a long-term cost plan at decrease charges.
Cavallero says there are some optimistic features to the initiative, however that it largely misses the central level.
“It’s good to see the political class recognising that money owed are a major problem for folks,” she stated. “Nonetheless, this method follows the logic of borrowing to repay debt. Whereas it might present short-term aid, deeper structural adjustments are wanted.
“Simply as banks are bailed out, we’re calling for households to be supported. A extra sustainable answer is for wages to maintain tempo with the price of the fundamental basket, so that individuals do not need to enter debt simply to afford meals,” Cavallero advised Al Jazeera.
Regardless of all of the challenges he and his household face, Nacasio says many individuals like himself nonetheless rely themselves fortunate.
“At the least we personal our home,” he stated. “If we didn’t and we needed to pay hire, I don’t know what we’d do. I simply want issues to alter, for us and for everyone. Issues can’t proceed like this.”
