BUENOS AIRES, Reuters Argentina39;s economy likely shrank 1.4 in the second quarter versus a year earlier, a Reuters poll showed on Monday, the fifth such decline as a recession deepens under a tough austerity drive by libertarian President Javier Milei.

That median GDP estimate from 15 analysts polled by Reuters for the AprilJune period would follow a 5.1 yearoveryear contraction in the first quarter. The official data is released on Wednesday.

Milei39;s costcutting has hurt economic activity and pushed up poverty and unemployment. The government says it is necessary to rein in tripledigit inflation, rebuild reserves and reverse years of deep fiscal deficits.

The South American country entered a technical recession two straight periods of quarteronquarter GDP contraction in the first quarter of the year.

We are still in recession, but there are some signs that it may be coming to an end, said analyst Marcelo Rojas, referring to signals the country39;s economic slump may have bottomed out.

GDP has a lot of room to grow, but new capital will be needed to generate momentum.

Argentina has seen some industries rebound faster than others, with the key farming sector performing strongly, along with oil and gas from the massive Vaca Muerta shale region. Construction and consumption remain weak.

The agricultural sector, energy and mining show solid recovery rates. In contrast, construction, financial intermediation and trade show significant declines, said Pablo…