"Real GDP is projected to decline further in 2019, bringing the cumulative decline since 2013 to over 50 percent," the IMF said in its newly published Regional Economic Outlook for Latin America and the Caribbean.
The IMF cited plunging oil production and worsening conditions in the non-oil sector as the primary reasons for the country's GDP decline.
The IMF also projected a new wave of hyperinflation, as well as another surge in outward migration.
"Evolving political developments add another layer of uncertainty to the country’s outlook," it said.
“It is very difficult to forecast what may lie ahead in terms of growth,” Werner said.
The statement was made amid the ongoing political crisis in the country: on Tuesday, the opposition-run Venezuelan National Assembly adopted a statement declaring President Nicolas Maduro a usurper. The day later, opposition leader Juan Guaido proclaimed himself the country's interim president at a mass rally in Caracas.
The United States, Argentina, Brazil, Canada, Chile and Colombia, among others, have recognized Guaido as Venezuela's interim president, while other countries, including Russia and Mexico, have expressed support for incumbent Maduro as the country's democratically elected leader.