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Economic Implications of Data Regulation: Balancing openness and trust
Cross‑border data flows are the lifeblood of today’s social and economic interactions, but they also raise a range of new challenges, including for privacy and data protection, national security, cybersecurity, digital protectionism and regulatory reach. This has led to a surge in regulation regarding data flow or mandating that data be stored or processed domestically. This report provides estimates on what is at stake, highlighting that full fragmentation, where all economies fully restrict their data flows, could reduce global GDP by 4.5%.
The report also underscores the benefits associated with open regimes that include safeguards, finding that these could see global GDP increase by 1.7%. In a world where digital fragmentation is growing, global discussions on these issues can help harness the benefits of an open and safeguarded internet.
Published in 2025.
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