OECD: Balanced Data Flow Regulations Could Increase GDP
“Data autarky,” a scenario where all economies fully restrict data flows, would prompt gross domestic product (GDP) losses of 4.5%, the Organisation for Economic Co-operation and Development said in a report Monday. Exports would decline 8.5%, added the OECD.
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However, the “absence of data flow regulation is also associated with negative economic outcomes,” because while trade costs would fall, so would trust, the OECD said. “Overall, global GDP would fall by nearly 1% and global exports by just over 2%.” High-income economies could see GDP drop by more than 2%.
“Open regimes that include safeguards balance the trade costs associated with data regulation with the trust benefits of data safeguards,” continued the OECD. “If such approaches were adopted by all economies, global exports would grow by 3.6% and global GDP by 1.77%.”
The report comes amid uncertainty over the U.S. Privacy and Civil Liberties Oversight Board, an organization that plays a key role in overseeing data flows between U.S. and EU companies. President Donald Trump dismissed three of four members, who were Democratic appointees (see 2501300049 and 2501240009).