LDC graduation could slow Cambodia's GDP growth by up to 1.5%: UNDP

Women working in the garments sector will be the worst affected, she told a recent consultation workshop in Phnom Penh.

The country is scheduled to graduate from the LDC category on December 19, 2029. The UN General Assembly adopted a resolution in December 2024 to grant Cambodia an extended five-year preparatory period.

“Without proactive measures, these challenges could hinder Cambodia’s long-term development ambitions and social well-being,” she said.

Citing a study carried out by UNDP along with the country’s ministry of planning on the potential impacts of LDC graduation on Cambodia’s foreign trade, she said the loss of trade flexibilities and preferential tariffs will particularly affect key exports like garments, rice and bicycles to markets in the European Union, Canada and the United Kingdom.

Challenges post graduation include the gradual phase-out of international trade-related support, as well as financial and technical development assistance, she noted.

“This uncertainty complex would require pre-investments in resources and reform policies to drive timely and just transformations for ensuring Cambodia’s smooth and durable graduation,” she added.

Fibre2Fashion News Desk (DS)