G20 Finance Officials Discuss Growth Strategies Amidst Iran Conflict
Tokyo (ANTARA) - G20 finance ministers and central bank governors met on Monday (31/8) to discuss methods for boosting economic growth amidst the impact of the US-Israel war against Iran, which continues to cloud business prospects and inflation outlooks.
As their two-day meeting commenced in a mountain town in North Carolina, US Treasury Secretary Scott Bessent asserted that the US will continue to exert pressure on Iran, expressing his belief that the nation’s economy could collapse “within weeks or months.”
With the war having entered its sixth month recently, Bessent voiced hope that other G20 members would align with the US in economically isolating Iran.
However, he told reporters that Iran’s economy “does not have to collapse. We just need to make the regime aware.”
A US Treasury official stated that the administration of President Donald Trump views it as vital for group members—including China, Iran’s major economic partner—to comply with US sanctions rules if they wish to continue operating within the Western financial system.
Last week, while announcing a new campaign against Tehran dubbed “Operation Economic Outcast,” Bessent warned that countries could face secondary sanctions if they conduct business with Iran.
On the first day of the G20 meeting in Asheville, financial leaders assessed global economic conditions and discussed ways to accelerate economic growth.
“Our top and most fundamental priority is economic growth, which rests on resource abundance, regulatory clarity, and the strength of our markets,” Bessent said in his opening speech; he led the G20 discussions alongside US Federal Reserve Chair Kevin Warsh.
“When these conditions are met, the business world can do things that governments cannot,” Bessent added.
For the first time, Bessent invited business leaders, including JPMorgan Chase & Co. CEO Jamie Dimon and Goldman Sachs Group Inc. CEO David Solomon, to join discussions with G20 policymakers.
Bessent stated that the goal of fostering closer cooperation with the private sector is “to identify growth barriers and design reforms to remove those obstacles.”
A senior US Treasury official noted that representatives from several countries raised risks to the global economy—including the potential closure of the Strait of Hormuz by Iran—and called for a “fairer” international trading system.
Japanese Finance Minister Satsuki Katayama told reporters that she emphasised the importance of diversification and strengthening supply chains.
Without specifically naming China, Katayama said she also conveyed to her counterparts that arbitrary export restrictions on critical minerals negatively impact the global economy and must be abolished.
The group—which includes both developed and developing nations and represents approximately 85 per cent of global GDP—has struggled to maintain relevance in recent years after failing to reach multilateral consensus on various issues.
The United States, holding the G20 presidency this year, is seeking to return the group to its primary mission of driving economic growth, with an emphasis on deregulation, technological innovation, and close cooperation with the business world.
The United States, which will host the G20 Summit in December, aims to release a joint communique following the two-day discussions, despite major agenda items including global economic imbalances and other difficult-to-agree-upon issues, according to G20 officials.
On Monday, finance leaders from the G7 (the UK, Canada, France, Germany, Italy, Japan, and the US, plus the European Union) held a separate meeting on the sidelines of the G20 to discuss the global economy, support for Ukraine, and issues related to Artificial Intelligence (AI), according to Katayama.