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.
-3.7% (2017 est.)
0% (2016 est.)
10.1% (2015 est.)
0.9% (2017 est.)
-1% (2016 est.)
$316 million (2019 est.)
$330 million (2018 est.)
$317 million (2017 est.)
note: data are in 2017 dollars
$292 million (2017 est.)
$17,579 (2019 est.)
$18,463 (2018 est.)
$17,841 (2017 est.)
note: data are in 2017 dollars
12.3% of GDP (2017 est.)
50.1% of GDP (2015 est.)
agriculture: 3% (2016 est.)
industry: 19% (2016 est.)
services: 78% (2016 est.)
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.)
Overall score: 53.7 (2020)
Starting a Business score: 82.1 (2020)
Trading score: 61 (2020)
Enforcement score: 52.2 (2020)
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
tourism, fishing, subsistence agriculture
N/A
11,610 (2016)
agriculture: 1.2%
industry: 12.4%
services: 86.4% (2016)
1.7% (2015 est.)
4.1% (2012)
24.9% NA (2006)
lowest 10%: NA
highest 10%: NA
revenues: 193 million (2012 est.)
expenditures: 167.3 million (2012 est.)
66.1% (of GDP) (2016 est.)
8.8% (of GDP) (2016 est.)
24.1% of GDP (2016 est.)
21.6% of GDP (2015)
1 October - 30 September
-$53 million (2017 est.)
-$36 million (2016 est.)
$23.17 billion (2017 est.)
$14.8 million (2015 est.)
Japan 70%, South Korea 15%, United States 7% (2019)
fish, computers, broadcasting equipment, office machinery/parts, scrap vessels (2019)
$4.715 billion (2018 est.)
$4.079 billion (2017 est.)
South Korea 19%, China 18%, Taiwan 17%, United States 17%, Japan 16% (2019)
refined petroleum, fish, cars, broadcasting equipment, modeling instruments (2019)
$0 (31 December 2017 est.)
$580.9 million (31 December 2015 est.)
$18.38 billion (31 December 2014 est.)
$16.47 billion (31 December 2013 est.)
the US dollar is used
NOTE: The information regarding Palau on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Palau 2021 information contained here. All suggestions for corrections of any errors about Palau 2021 should be addressed to the CIA or the source cited on each page.
This page was last modified 16 Dec 23, Copyright © 2023 ITA all rights reserved.