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. The Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, provided Palau with up to $700 million in US aid for the following 15 years in return for furnishing military facilities. Business and tourist arrivals numbered 85,000 in 2007. 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):
$164 million (2008 est.)
$124.5 million (2004)
note: GDP estimates includes US subsidy
GDP (official exchange rate):
$164 million (2008)
GDP - real growth rate:
NA
5.5% (2005 est.)
GDP - per capita (PPP):
$8,100 (2008 est.)
$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.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Budget:
revenues: $114.8 million
expenditures: $99.5 million (2008 est.)
Inflation rate (consumer prices):
2.7% (2005 est.)
Market value of publicly traded shares:
$NA
Agriculture - products:
coconuts, copra, cassava (tapioca), sweet potatoes; fish
Industries:
tourism, craft items (from shell, wood, pearls), construction, garment making
Industrial production growth rate:
NA%
Current account balance:
$15.09 million (FY03/04)
Exports:
$5.882 million f.o.b. (2004 est.)
Exports - commodities:
shellfish, tuna, copra, garments
Imports:
$107.3 million f.o.b. (2004 est.)
Imports - commodities:
machinery and equipment, fuels, metals; foodstuffs
Debt - external:
$0 (FY99/00)
Exchange rates:
the US dollar is used