International Monetary Fund chief warns of 'digital Berlin Wall'

Georgieva also warned that the intensification of anti-competitive trends during the Covid-19 pandemic could reduce the level of GDP in advanced economies by 1 per cent in the medium term

International Monetary Fund Managing Director Kristalina Georgieva urged policy makers to avoid the balkanisation of the digital economy or risk as much as a 6 per cent hit to global economic output over the next decade.  The world may soon face a “digital Berlin Wall” whereby the US, European Union and China all adopt discordant technology standards, Georgieva said in prepared remarks on Monday to the Paris-based OECD. 

Such a splintered digital economy may force poor nations to “choose sides” and result in higher prices, reduced innovation and service, she said, adding that decoupling could see a 3 per cent to