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Introduction - Palau:
Location - Palau:
People - Palau:
Government - Palau:
Economy - Palau:

Economy overview

The economy consists primarily of tourism, subsistence agriculture, and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. Business and tourist arrivals numbered 63,000 in 2003. The population enjoys a per capita income roughly 50% higher than that of the Philippines and much of Micronesia. Long-run prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development.

Gdp purchasing power parity

$124.5 million
NOTE: includes US subsidy (2004 est.)

Gdp official exchange rate

$145 million (2005)

Gdp real growth rate

5.5% (2005 est.)

Gdp per capita ppp

$7,600 (2005 est.)

Gdp composition by sector

agriculture: 6.2%
industry: 12%
services: 81.8% (2003)

Labor force

9,777 (2005)

Labor force by occupation

agriculture: 20%
industry: NA%
services: NA% (1990)

Unemployment rate

4.2% (2005 est.)

Population below poverty line


Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate consumer prices

2.7% (2005 est.)


revenues: $72.07 million
expenditures: $72.43 million; including capital expenditures of $12.98 million (FY04/05 est.)

Agriculture products

coconuts, copra, cassava (tapioca), sweet potatoes; fish


tourism, craft items (from shell, wood, pearls), construction, garment making

Industrial production growth rate


Current account balance

$15.09 million (FY03/04)


$5.882 million f.o.b. (2004 est.)

Exports commodities

shellfish, tuna, copra, garments

Exports partners

US, Japan, Singapore (2006)


$107.3 million f.o.b. (2004 est.)

Imports commodities

machinery and equipment, fuels, metals; foodstuffs

Imports partners

US, Singapore, Japan, South Korea (2006)

Debt external

$0 (FY99/00)

Economic aid recipient

$19.6 million; note - the Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, provides Palau with up to $700 million in US aid over 15 years in return for furnishing military facilities (2004)

Currency code

US dollar (USD)

Exchange rates

the US dollar is used

Communications - Palau:
Transportation - Palau:
Military - Palau:
This page was last updated on 16 September, 2007
Source: CIA >>>

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