Although some macroeconomic indicators showed signs of stabilization towards the end of 2025, the economic stress is positioned as a less visible, although much more widespread, phenomenon that continues to shape the everyday lives of millions of Argentines. According to the latest report from the Argentine Observatory of Social Debt des Argentine Catholic Universitythis indicator already reaches approximately half of the urban populationeven well above the traditional income poverty line.
The data leads to a break in the classic economic reading: Not being poor is no longer a guarantee of well-being or financial stability..
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One of the most compelling findings of the report “Balance of consumption capacities in urban Argentina measured by monetary deprivation and economic stress“whose author is Julia Verathe thing is Measured by income, a significantly higher proportion of people are affected by economic stress than by poverty. These are households that report this despite being above the official poverty line Your income is not enough to cover basic expenses, maintain regular consumption or cope with unforeseen events..
From an economic perspective, the phenomenon reveals an ever-increasing gray area: people who are statistically “not poor,” but are economically suffocatedwithout room for financial maneuvers and with high vulnerability to untimely changes in economic variables.
Economic stress: Not being able to save is also a form of deprivation
The report introduces a notable conceptual change, namely: the inability to save is seen as a central form of economic deprivation. It’s not about saving to invest, but about something more fundamental: not being able to generate a minimum financial cushion.
In macro and microeconomic terms, this situation means greater dependence on informal credit or short-term debt; a lower absorptive capacity in the face of tariff increases, health care costs or income losses and a much more defensive consumption.
Savings, historically associated with the middle and upper sectors, are no longer a luxury but are becoming a luxury Key indicator of economic stability.
This is one of the most striking aspects of the studyEconomic stress no longer only affects the poor sectors. It expands greatly between the Lower and middle classeven in households with formal employment and employment continuity, which explains part of the ongoing social unrest: income that grows less than fixed costs, loss of consumption capacity and expectations that are not reconfigured. The middle class also appears new theme of vulnerabilitynot due to abrupt declines, but due to a sustained erosion of purchasing power.
The macro-micro paradox: improving indicators, persistent discomfort
The report notes an increasingly common paradox in the local economy: Some macro variables improve, but household economic perceptions do not change.
In 2024 and 2025, the slowdown in inflation and some recomposition of real income did not automatically lead to a proportional reduction in economic stress. The reason is twofold: There is one psychological and financial delay After years of high inflation and the consumption adjustments made during the crisis, they will not be reversed quickly.
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The result is a feeling of incomplete relief, where stability is not yet perceived as final.
Another important fact is that economic stress continues even with lower inflation because the structure of household spending became more rigid. Rent, public services, transport and health account for a growing share of income, leaving little room for adjustment.
From an economic point of view, the problem is no longer just the price level, but relative prices and the composition of expenditure. Even with falling inflation, financial stress remains high due to a lack of budget flexibility.
This creates economic stress as well as a wider and more sensitive indicator than traditional poverty to understand the current social situation. It captures not only income, but also expectations, ability to save and structural fragility.
The UCA report comes to a clear conclusion: Argentina faces not only a problem of poverty, but also a deeper and more widespread problem of economic fragility.affecting large sectors that are no longer able to convert income into stability.
A challenge for the government in 2026 that requires a recomposition of incomes for all sectors.
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