The Managing Director of the IMF, Kristalina Georgieva, has said more money will need to be spent by governments "to prevent long-lasting economic damage".
In a statement, Ms Georgieva said "additional fiscal stimulus" will be necessary and that "the case for a coordinated and synchronized global fiscal stimulus is becoming stronger by the hour."
The statement said the IMF is prepared to loan $1 trillion to support governments, particularly in emerging markets.
It recommends that government prioritise spending on health, increases in sick leave pay and targeted tax relief.
The statement points to the $900 billion spent by G20 governments in 2009 during the financial crisis and concludes that in comparison to that response, there is "a lot more to do" today.
The statement also recommends that national financial regulators show flexibility to banks which will need to use their reserves to "renegotiate loan terms for stressed borrowers".
Meanwhile, leaders of the G7 advanced economies pledged to use all their tools to safeguard the economy and help workers hurt by the pandemic.
As the outbreak caused more countries to shut down and brought the global economy to a screeching halt, the leaders stressed the need to join forces and move quickly to address the damage.
"We resolve to coordinate measures and do whatever it takes, using all policy tools, to achieve strong growth in the G7 economies and to safeguard against downside risks," the leaders said in a statement following an emergency video conference.
The measures are aimed to "support immediately and as much as necessary the workers, companies, and sectors most affected," the statement said.
In addition, the leaders instructed their finance ministers to consult weekly to implement policy measures and "develop further timely and effective actions."
They noted the disruption to supply chains due to transportation shutdowns, as well as the harm to families.
The leaders called on global institutions like the International Monetary Fund to "swiftly" deploy financial assistance to countries that need it.
"We are committed to working together with resolve to implement these measures to respond to this global emergency," they said.
And they said they are "determined not only to restore the level of growth anticipated before the COVID-19 pandemic but also to build the foundation for stronger future growth."
