| Economy - overview | The economy is dominated by tourism, fishing, and subsistence agriculture. Government is a major employer of the work force relying on financial assistance from the US under the Compact of Free Association (Compact) with the US that took effect after the end of the UN trusteeship on 1 October 1994. The US provided Palau with roughly $700 million in aid for the first 15 years following commencement of the Compact in 1994 in return for unrestricted access to its land and waterways for strategic purposes. The population enjoys a per capita income roughly double that of the Philippines and much of Micronesia. Business and leisure tourist arrivals reached a record 167,966 in 2015, a 14.4% increase over the previous year, but fell to 138,408 in 2016. Long-run prospects for tourism have been bolstered by the expansion of air travel in the Pacific, the rising prosperity of industrial East Asia, and the willingness of foreigners to finance infrastructure development. Proximity to Guam, the region's major destination for tourists from East Asia, and a regionally competitive tourist infrastructure enhance Palau's advantage as a destination. |
| GDP (purchasing power parity) | $316 million (2019 est.) $330 million (2018 est.) $317 million (2017 est.) note: data are in 2017 dollars |
| GDP (official exchange rate) | $292 million (2017 est.) |
| GDP - real growth rate | -3.7% (2017 est.) 0% (2016 est.) 10.1% (2015 est.) |
| GDP - per capita (PPP) | $17,579 (2019 est.) $18,463 (2018 est.) $17,841 (2017 est.) note: data are in 2017 dollars |
| Gross national saving | 12.3% of GDP (2017 est.) 50.1% of GDP (2015 est.) |
| GDP - composition, by end use | household consumption: 60.5% (2016 est.) government consumption: 27.2% (2016 est.) investment in fixed capital: 22.7% (2016 est.) investment in inventories: 1.9% (2016 est.) exports of goods and services: 55.2% (2016 est.) imports of goods and services: -67.6% (2016 est.) |
| GDP - composition by sector | agriculture: 3% (2016 est.) industry: 19% (2016 est.) services: 78% (2016 est.) |
| Ease of Doing Business Index scores | Overall score: 53.7 (2020) Starting a Business score: 82.1 (2020) Trading score: 61 (2020) Enforcement score: 52.2 (2020) |
| Population below poverty line | 24.9% NA (2006) |
| Labor force | 11,610 (2016) |
| Labor force - by occupation | agriculture: 1.2% industry: 12.4% services: 86.4% (2016) |
| Unemployment rate | 1.7% (2015 est.) 4.1% (2012) |
| Unemployment, youth ages 15-24 | total: 5.6% |
| Household income or consumption by percentage share | lowest 10%: NA highest 10%: NA |
| Budget | revenues: 193 million (2012 est.) expenditures: 167.3 million (2012 est.) |
| Taxes and other revenues | 66.1% (of GDP) (2016 est.) |
| Budget surplus (+) or deficit (-) | 8.8% (of GDP) (2016 est.) |
| Public debt | 24.1% of GDP (2016 est.) 21.6% of GDP (2015) |
| Inflation rate (consumer prices) | 0.9% (2017 est.) -1% (2016 est.) |
| Agriculture - products | coconuts, cassava (manioc, tapioca), sweet potatoes; fish, pigs, chickens, eggs, bananas, papaya, breadfruit, calamansi, soursop, Polynesian chestnuts, Polynesian almonds, mangoes, taro, guava, beans, cucumbers, squash/pumpkins (various), eggplant, green onions, kangkong (watercress), cabbages (various), radishes, betel nuts, melons, peppers, noni, okra |
| Industries | tourism, fishing, subsistence agriculture |
| Industrial production growth rate | NA |
| Current Account Balance | -$53 million (2017 est.) -$36 million (2016 est.) |
| Exports | $23.17 billion (2017 est.) $14.8 million (2015 est.) |
| Exports - commodities | fish, computers, broadcasting equipment, office machinery/parts, scrap vessels (2019) |
| Exports - partners | Japan 70%, South Korea 15%, United States 7% (2019) |
| Imports | $4.715 billion (2018 est.) $4.079 billion (2017 est.) |
| Imports - commodities | refined petroleum, fish, cars, broadcasting equipment, modeling instruments (2019) |
| Imports - partners | South Korea 19%, China 18%, Taiwan 17%, United States 17%, Japan 16% (2019) |
| Reserves of foreign exchange and gold | $0 (31 December 2017 est.) $580.9 million (31 December 2015 est.) |
| Debt - external | $18.38 billion (31 December 2014 est.) $16.47 billion (31 December 2013 est.) |
| Exchange rates | the US dollar is used |
| Fiscal year | 1 October - 30 September |
Source: CIA World Factbook
This page was last updated on September 18, 2021
