Argentina’s average income in dollars is almost a third of Brazil’s

The strong inflationary acceleration in recent months and the lack of income recovery are leading to a loss of purchasing power and a deepening of poverty in Argentina. This is what a company report reveals Focus Market about how economies compare to the dollar.

The data shows that the average income, in dollars, in the neighboring country does not reach 200. This is the minimum amount that retirees earn with bonuses included, and which is far from their expenses. For example, yesterday the specific basket for the elderly was announced, which has already reached 700 thousand pesos (equivalent to R$4079.45).

Dollar average income and the economic crisis

“Without Argentines taking the risk of investing their savings, there will be no production or employment. Without employment and without growth in production, it is impossible to improve income”, he said Damian Di Pacefrom the consultancy FocusMarket, responsible for the research.

The economic analyst describes that Argentines’ income measured in dollars is close to the exit levels of the convertibility regime. For its part, inflation has not let up in the last 13 years, and the accumulated salary has lost its value sharply due to the variation in prices in the economy.

“When analyzing the average income in dollars in comparative terms with the rest of Latin American countries, we can see that the average income in Argentina is US$196 per month (nominal values ​​evaluated in parallel dollars were taken as the methodology). In comparative terms, in the Brazil or in Uruguay are US$574 and US$810, respectively”, says the research.

However, if we consider the richest sector of the population, the average base income in the country is US$476 per month. But, in the case of Chile, is US$ 1.26 thousand. In the case of Uruguay, it almost doubles – reaching US$2,582, and in Brazil, which is the least favored, it reaches US$941. “This means that, amid fiscal adjustments to avoid the crisis, Argentina is currently at the lowest levels in dollars compared to Latin American countries (the methodology given by each national statistical institute in each country in official dollars)”indicates the study.

The differences between each region

Another issue that the study assesses is how the economic crisis affects the average family income in dollars and per capita on a monthly basis in different provinces.

In the city of Buenos Airesthe average per capita family income is US$213, followed by Fire land with US$203, Jujuy with US$155, and so on. All of these provinces receive incomes above US$100. However, the most alarming numbers occur in provinces like Chubut, Corrientes It is Formosawhich coexist with US$59, US$69 and US$76 per month, respectively.

When evaluating the daily per capita income in different corners of Argentina, the study shows that the capital and Tierra del Fuego have US$7.12 and US$6.78, respectively. However, provinces like Chaco It is La Rioja they live on average on US$1.97 and US$2.33, respectively.

To conclude the analysis, economist Damián Di Pace highlights that “In recent decades, the welfare state has taken a portion of all Argentines to give it to another small portion through social assistance, leaving them even poorer than at the starting point. In turn, the most precious means of an economy, such as currency, has been destroyed to the point that our country has the largest annual price variation in the world.”

*Article originally published (in Spanish) in Profile