Estimates amongst 11 local and foreign analysts also reflected an average contraction of 5% in the January-March 2024 period.

Argentina's Gross Domestic Product (GDP) would have recorded a contraction of 5.3% year-on-year in the first quarter of 2024, mainly affected by the fall in consumption and investment, according to the median of a Reuters survey.

Estimates among 11 local and foreign analysts also reflected an average GDP drop of 5% in the period.

The GDP result is "the most accurate thermometer of how the economy is doing since it is linked to internal demand, which considers domestic consumption and investment," said Ignacio Ruiz, economist at consulting firm Ecolatina.

The projections of the analysts surveyed ranged between a minimum and maximum decline of 3.1% and 5.3%, respectively.

"Although inflation continues its downward trend, it still remains at (a) fairly high level which, added to the strong fiscal adjustment that the government is carrying out, together, causes a strong contraction of activity," said consulting firm Management & Fit.

The South American country, according to data from the National Institute of Statistics and Censuses (INDEC), registered monthly contractions in economic activity (EMAE) of 4.1% in January, 3% in February, and 8.4% in March.

The EMAE is a relevant estimator for the market because it anticipates the trajectory of the GDP.

Recently, the International Monetary Fund (IMF) announced that it expects Argentine GDP to end 2024 with a contraction of 3.5%, according to its staff report on the South American nation.

INDEC will publish the official GDP data for the first quarter of 2024 on Monday afternoon.