The International Monetary Fund (IMF) on Wednesday said Brazil "was submerged" in a profound recession due to its continuing economic and political problems.

In a new report entitled Regional Economic Outlook: Western Hemisphere, which was released Wednesday, the IMF said that continued political tensions in Brazil were delaying the recovery of investments and economic activity.

The report presents the consequences of a deeper economic recession in Brazil, including a negative impact on other regional economies and lower demand for exports.

The IMF believes Argentina, Paraguay and Uruguay are particularly in danger of being hurt by economic repercussions beyond Brazil, adding the entire region is at risk.

On April 12, the IMF predicted that Brazilian economy would contract by 3.8 percent this year.

In the report, the global lender also wrote that "this rate hides the fact that many countries are growing, if modestly, while a small number of economies, which account for close to half the GDP of the region, are facing recession."

Furthermore, any deepening of Brazil's crisis could cause abrupt falls in regional economies, a lowering demand for exports among Latin American commercial partners, and an increase in risk perception from international markets.

The Brazilian economy, already battered by low commodity prices, inflation and unemployment, has been further beleaguered by the impeachment attempt against President Dilma Rousseff and the accompanying political gridlock.