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IAG: Argentina’s Middle Class Now a Risk Group as 53% Tap Savings or Debt to Get By

Higher utility bills after subsidy cuts squeezed budgets, forcing many families to drain savings or take on new loans.

Overview

  • An IAG analysis of INDEC’s household survey shows 53% of middle‑income homes used coping strategies in 2Q 2025, versus 48% of all households.
  • About 40% of middle‑income households spent savings to cover basics, and 9% sold belongings, marking a drawdown of future assets.
  • One in four households took on new debt to make ends meet, with 18% of middle‑income homes borrowing from banks, the only indicator worse than 2024.
  • Personal loan delinquency reached a record near 9–9.1% in September, according to the central bank, underscoring rising financial stress.
  • Utility costs rose sharply after subsidy cuts, climbing from about 4% of a median salary in November 2023 to roughly 11% in 2025, with female‑headed households seeing notable strain.