Economy - overview The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population enjoys a per capita income of more than twice that of the Philippines and much of Micronesia. Long-run prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rising prosperity of leading East Asian countries.

GDP purchasing power parity - $160 million (1997 est.)
note: GDP numbers reflect US spending

GDP - real growth rate 10% (1997 est.)

GDP - per capita purchasing power parity - $8,800 (1997 est.)

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index NA%

Labor force NA
by occupation: NA

Unemployment rate 7%

Budget
revenues: $52.9 million
expenditures: $59.9 million, including capital expenditures of $NA (1997 est.)

Industries tourism, craft items (from shell, wood, pearls), some commercial fishing and agriculture

Industrial production growth rate NA%

Electricity - capacity 62,000 kW (1995)

Electricity - production 195 million kWh (1995)

Electricity - consumption per capita 11,704 kWh (1995)

Agriculture - products coconuts, copra, cassava (tapioca), sweet potatoes

Exports
total value: $14.3 million (f.o.b., 1996)
commodities: trochus (type of shellfish), tuna, copra, handicrafts
partners: US, Japan

Imports
total value: $72.4 million (f.o.b., 1996)
commodities: NA
partners: US

Debt - external about $100 million (1989)

Economic aid
recipient: ODA, $NA
note: the Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, will provide Palau with up to $700 million in US aid over 15 years in return for furnishing military facilities

Currency 1 United States dollar (US$) = 100 cents

Exchange rates US currency is used

Fiscal year 1 October - 30 September

NOTE: The information regarding Palau on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Palau Economy 1998 information contained here. All suggestions for corrections of any errors about Palau Economy 1998 should be addressed to the CIA.