Palau Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$320 million (2019 est.)

$330 million (2018 est.)

$317 million (2017 est.)

note: data are in 2017 dollars

Real GDP growth rate

-3.7% (2017 est.)

0% (2016 est.)

10.1% (2015 est.)

Real GDP per capita

$17,600 (2019 est.) note: data are in 2017 dollars

$18,400 (2018 est.) note: data are in 2017 dollars

$17,841 (2017 est.)

GDP (official exchange rate)

$292 million (2017 est.)

Inflation rate (consumer prices)

0.9% (2017 est.)

-1% (2016 est.)

GDP - composition, by sector of origin

agriculture: 3% (2016 est.)

industry: 19% (2016 est.)

services: 78% (2016 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.)

Agricultural 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

N/A

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)

Youth unemployment rate (ages 15-24)

total: 5.6%

male: NA

female: (2014) NA

Population below poverty line

24.9% (2006) NA

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.)

Budget surplus (+) or deficit (-)

8.8% (of GDP) (2016 est.)

Public debt

24.1% of GDP (2016 est.)

21.6% of GDP (2015)

Taxes and other revenues

66.1% (of GDP) (2016 est.)

Fiscal year

1 October - 30 September

Current account balance

-$53 million (2017 est.)

-$36 million (2016 est.)

Exports

$23.17 billion (2017 est.)

$14.8 million (2015 est.)

Exports - partners

Japan 70%, South Korea 15%, United States 7% (2019)

Exports - commodities

fish, computers, broadcasting equipment, office machinery/parts, scrap vessels (2019)

Imports

$4.715 billion (2018 est.)

$4.079 billion (2017 est.)

Imports - partners

South Korea 19%, China 18%, Taiwan 17%, United States 17%, Japan 16% (2019)

Imports - commodities

refined petroleum, fish, cars, broadcasting equipment, modeling instruments (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

NOTE: The information regarding Palau on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Palau 2022 information contained here. All suggestions for corrections of any errors about Palau 2022 should be addressed to the CIA or the source cited on each page.