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 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 - $129 million (1998 est.)
note: GDP numbers reflect US spending

GDP - real growth rate: -1.4% (1998 est.)

GDP - per capita: purchasing power parity - $7,100 (1998 est.)

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

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): NA%

Labor force: 8,300 (1999)

Labor force - by occupation: agriculture NA%, industry NA%, services NA%

Unemployment rate: 2.3% (2000 est.)

Budget:
revenues: $57.7 million
expenditures: $80.8 million, including capital expenditures of $17.1 million (FY98/99 est.)

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

Industrial production growth rate: NA%

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

Exports: $14.3 million (f.o.b., 1996)

Exports - commodities: trochus (type of shellfish), tuna, copra, handicrafts

Exports - partners: US, Japan

Imports: $126 million (f.o.b., FY99/00)

Imports - commodities: machinery and equipment, fuels, metals; foodstuffs

Imports - partners: US

Debt - external: $0 (FY99/00)

Economic aid - recipient: $155.8 million (1995); 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: US dollar (USD)

Currency code: USD

Exchange rates: the US dollar is used

Fiscal year: 1 October - 30 September

NOTE: The information regarding Palau on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Palau Economy 2001 information contained here. All suggestions for corrections of any errors about Palau Economy 2001 should be addressed to the CIA.