Economy - overview The economy consists primarily of subsistence agriculture and fishing.The government is the major employer of the work force, relying heavily onfinancial assistance from the US. The population, in effect, enjoys a percapita income of $5,000, twice that of the Philippines and much of Micronesia.Long-run prospects for the tourist sector have been greatly bolstered by theexpansion of air travel in the Pacific and the rapidly rising prosperity ofleading East Asian countries. Reducing budgeted operating expenditures - whichhave increased 56% from 1989 to 1993 - will be the biggest challenge for thegovernment over the next several years.

GDP purchasing power parity - $81.8 million (1994 est.)
note: GDP numbers reflect US spending

GDP - real growth rate NA%

GDP - per capita purchasing power parity - $5,000 (1994 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 NA%

Budget
revenues : $21 million
expenditures: $57 million, including capital expenditures of $NA (1996 est.)

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

Industrial production growth rate NA%

Electricity - capacity NA kW

Electricity - production NA kWh

Electricity - consumption per capita NA kWh

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

Exports
total value: $600,000 (f.o.b., 1989)
commodities: trochus (type of shellfish), tuna, copra, handicrafts
partners: US, Japan

Imports
total value : $24.6 million (c.i.f., 1989)
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 theend 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 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Palau Economy 1997 information contained here. All suggestions for corrections of any errors about Palau Economy 1997 should be addressed to the CIA.