The economic architecture of Palau is substantial, anchored by a Gross Domestic Product (GDP) of approximately $281.85M
2023
. This places it as the 188th largest economy out of 192 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $15.9K
2023
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $310.78M, offering a clearer picture of the population's domestic purchasing power. The economy is navigating a period of modest growth, recorded at 1.9%
2023
, accompanied by a stable price environment, with inflation (CPI) contained at 2.2%.
2024
On the global stage, Palau's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 74.3% of GDP and exports at 13.5%
2022
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 16.97% of the economy
2023
. This performance positions the country 5th globally out of 187 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $1.95M annually
2023
. Fiscal capacity is adequate, with tax collections representing 18.1% of GDP, supporting core state functions.
2020
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $14,110
2023
, ranking the nation 62nd out of 191. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. Despite its economic standing, poverty remains a salient issue, with 24.9% of the population living below the national poverty line
2006
.
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 4,814.383 kg of oil equivalent
1990
, a metric that often correlates with industrial activity and living standards. The energy portfolio remains heavily dependent on conventional sources, with renewables contributing a modest 0.9%
2022
. This commitment places it 12th among 191 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 1.5K tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

Balancing growth, inflation, and employment remains the core challenge for economic stewardship.

Trade & Investment Profile

The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A heavy dependence on fossil fuels poses significant long-term risks, including exposure to price volatility, energy insecurity, and climate change impacts.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.