# Economic instability and food insecurity in Latin America

> Live situation record from CLSTR: https://clstr.news/situations/economic-instability-and-food-insecurity-in-latin-america
> Updated: 2026-09-27T04:00:49.000Z. Sources: 9. Developments: 2.

Economic instability and rising food insecurity are affecting multiple countries across Latin America. In El Salvador, reports indicate that approximately 41.7% of the population, or 2.5 million people, struggle to obtain food due to financial constraints, amid rising inflation and public debt reaching 93% of GDP.

In Argentina, data shows severe hardship in popular neighborhoods, where 42.3% of residents have gone an entire day without eating due to lack of funds. Approximately 70% to 72% of households carry active debt, often relying on credit cards, personal loans, or informal lenders with high monthly interest rates to cover essential costs like food, healthcare, and utilities.

In Mexico, food insecurity affects 7.2 million households, including 3.8 million with minors, forcing families to reduce the variety, quantity, or frequency of meals. Meanwhile, in Guatemala, high labor informality is noted alongside a heavy reliance on cash transactions, which are used by over 80% of the population.

## Claims

- In Guatemala, cash is the primary payment method for over 80% of the population. (single source)
- 93.8% of Guatemalans use cash for purchases under Q200. (single source)
- Currency in circulation in Guatemala grew approximately 10.8% between July 2025 and July 2026. (single source)
- The labor informality rate in Guatemala is 66%. (single source)
- 70% of households in Argentina have active debts. (single source)
- 72% of Argentine households use credit cards or personal loans to cover basic daily expenses. (single source)
- 7.2 million Mexican households reported food insecurity or restricted access to food. (single source)
- 3.8 million Mexican households with minors experienced food access restrictions. (single source)

## Timeline

### 2026-09-27: Economic instability impacts households in Guatemala, Argentina, and Mexico

Economic data from Guatemala, Argentina, and Mexico reveal high levels of cash dependency, household debt for basic needs, and significant food insecurity due to financial constraints.

5 sources. https://clstr.news/cluster/economic-instability-impacts-households-in-guatemala-argentina-and-mexico

### 2026-09-19: Economic instability drives food insecurity in El Salvador and Argentina

Reports from El Salvador and Argentina reveal severe food insecurity, with significant portions of the population struggling to afford basic necessities amid rising inflation and debt.

4 sources. https://clstr.news/cluster/economic-instability-drives-food-insecurity-in-el-salvador-and-argentina

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Cite as: Economic instability and food insecurity in Latin America. CLSTR, https://clstr.news/situations/economic-instability-and-food-insecurity-in-latin-america