Palau/Economy

Economy of Palau

An overview of key economic indicators. Select a category for detailed trends, charts, and insights.

Explore Economic Domains

Growth & Output

Coming Soon
GDP (USD)
$281.8M(2023)
GDP PPP (USD)
$310.8M(2023)
GDP per Capita (USD)
$15,899(2023)
GDP Growth (inflation-adjusted)
1.9%(2023)
Inflation (CPI Annual %)
2.2%(2024)

Trade & Finance

Coming Soon
Exports (as share of GDP)
13.5%(2022)
Imports (as share of GDP)
74.3%(2022)
FDI Inflows (as share of GDP)
17%(2023)
Remittance Inflow (USD)
$2.0M(2023)
Tax Revenue (as share of GDP)
18.1%(2020)

Labor & Income

Coming Soon
Poverty Rate
24.9%(2006)
GNI per Capita (USD)
$14,110(2023)

Energy & Environment

Coming Soon
Energy Use per Capita
4814 kg oil eq.(1990)
Renewable Energy Consumption (%)
0.9%(2022)

Economic Snapshot Overview

A summary of key economic indicators for Palau

  • The economic architecture of Palau is substantial, anchored by a Gross Domestic Product (GDP) of approximately $281.85M
    2023
    . This places it as the 187th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $15.9K
    2023
    , while its GDP in Purchasing Power Parity (PPP) terms is estimated at $310.78M, reflecting the population's domestic purchasing power. The economy is seeing modest growth of 1.9%
    2023
    , accompanied by stable price levels, with inflation (CPI) at 2.2%
    2024
    .
  • On the global stage, the nation's trade and financial dynamics reveal a complex interplay of factors. The nation runs a trade deficit, with exports at 13.5% of GDP and imports at 74.3%
    2022
    . Foreign Direct Investment (FDI) inflows are significant, constituting 16.97% of the economy
    2023
    . This performance positions the country 5th globally out of 186 nations, indicating its relative attractiveness to foreign capital. Additionally, personal remittances received amount to a substantial $1.95M annually
    2023
    , highlighting the economic importance of its diaspora. Fiscal capacity is moderate, with tax revenue at 18.1% of GDP
    2020
    .
  • The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $14,110
    2023
    . Globally, this ranks the nation 61st out of 190 in terms of GNI per capita, providing a clear measure of its national wealth relative to others. Poverty remains a key issue, with 24.9% of the population living below the national poverty line
    2006
    .
  • On the environment and energy front, energy consumption per capita is 4,814.383 kg of oil equivalent
    1990
    . The energy mix is still heavily reliant on traditional sources, with renewables contributing 0.9%
    2022
    . Its commitment to clean energy places it 12th among 190 countries for its share of renewable energy consumption.

Key Economic Insights

Macroeconomic Health

Maintaining a balance between growth, inflation, and employment is the central challenge for economic policymakers.

Trade & Investment Profile

The economy is primarily driven by domestic demand, with limited exposure to global trade fluctuations but also fewer opportunities for export-led growth.

Social Equity & Distribution

Distributing the benefits of economic growth equitably is crucial for social cohesion and long-term stability.

Energy & Sustainability

Heavy reliance on fossil fuels creates significant long-term risks related to climate change, price volatility, and energy security.

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.