Nepal risks losing up to 132,000 jobs, $1 billion after LDC exit
Summary
Nepal risks losing up to 132,000 jobs and nearly $1 billion in economic output over five years after graduating from LDC status in November 2026, mainly due to loss of trade benefits impacting manufacturing and export sectors, especially for women.
Key Points
- Nepal may lose 132,000 existing jobs and nearly $1 billion in economic output over five years after its LDC graduation in 2026.
- Job losses are concentrated in export-oriented manufacturing sectors like apparel, textiles, and carpets, heavily affecting women workers.
- Economic losses stem from the removal of LDC-specific trade benefits, including preferential market access and tariff advantages.
- Targeted investments in trade facilitation, tourism, and ICT, along with policies supporting workers' skills and social protection, are critical for a smooth transition.
