Uruguay reports significant decline in poverty rates

Data from Uruguay’s National Institute of Statistics (INE) shows a significant decline in poverty and extreme poverty during the first half of 2026. The poverty rate fell from 17.7% to 14.8%, representing approximately 95,000 fewer people living below the poverty line. Extreme poverty, or indigence, also decreased from 1.8% to 1.2%.

President Yamandú Orsi celebrated the results, attributing the progress to social policies and economic growth. The government plans to deepen this trend by increasing and unifying monetary transfers for children and adolescents starting in 2027. Specific measures include the expansion of the ‘Bono Crianza’ for vulnerable households and an additional $31 million allocated to strengthen social benefits.

While the administration views these figures as a validation of its social roadmap, critics and analysts have raised questions regarding the nature of the decline. Some observers suggest the reduction is heavily influenced by increased state transfers and subsidies, which can move households above the poverty line statistically, even as structural issues like labor informality and stagnant employment persist.