With protectionist trend emerging in developed economies, Finance Minister Arun Jaitley tonight warned that economies will become more inefficient and GDP will shrink if such a move were to impact trade and movement of goods and people. He said demonetisation has forced “extraordinary large” amount of cash into the banking system which will not just increase ability of banks to lend at more reasonable rates, but also squeeze informal economy and make India a more tax-compliant society. “Developed countries have turned protectionist… If it has impact on trade, movement of goods and people, (it) could make economies more inefficient and reduce GDP,” he said at the Assocham annual meeting here. Globally, the world is moving in an unpredictable and slow pace and a prolonged slowdown can pose big problems, he said. Also, oil prices have risen slightly, threatening inflation and fiscal maths of importing nations like India.