A Reuters poll had estimated a collapse of 5.5% in January's EMAE, affected by a sustained drop in demand in a context of rampant inflation.

Argentina's economic activity (EMAE) contracted 4.3% year-on-year last January, following a 4.5% drop the previous month, the National Institute of Statistics and Censuses (INDEC) said on Tuesday.

A Reuters poll estimated a collapse of 5.5% for the EMAE in the first month of the year, affected by a sustained drop in demand in a context of rampant inflation.

The monthly estimate of activity fell 1.2% in seasonally adjusted terms when compared to December, the statistics agency added.

The EMAE, which dropped 1.6% in 2023, is considered a key indicator to project the GDP's trajectory.

In December, the ultra-liberal Javier Milei became president of the country with the promise of dollarizing the economy, eliminating the central bank (BCRA), cleaning up public accounts, defeating inflation and reducing rising poverty.