Palau - Economy

Geography - People - Economy - Government - Communications - Transportation - Military - Transnational Issues

Palau is located Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines. The climate is tropical; hot and humid; wet season May to November. The terrain is varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs.

Economy - overview

This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends.
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 63,000 in 2003. 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)

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per- capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP- denominated GDP values for most of the wealthy industrialized countries are generally much smaller.
GDP (purchasing power parity) - note : GDP estimates includes US subsidy (2004 est.)

GDP (official exchange rate)

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at official exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-a-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artificially fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home- currency-denominated GDP changed.
GDP (official exchange rate) : $145 million (2005)

GDP - real growth rate

This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.
GDP - real growth rate : 5.5% (2005 est.)

GDP - per capita (PPP)

This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
GDP - per capita (PPP) : $7,600 (2005 est.)

GDP

GDP - composition by sector - agriculture : 6.2%
GDP - composition by sector - industry : 12%
GDP - composition by sector - services : 81.8% (2003)

Labor force

This entry contains the total labor force figure.
Labor force : 9,777 (2005)
Labor force - by occupation - agriculture : 20%
Labor force - by occupation - industry : NA%
Labor force - by occupation - services : NA%

Unemployment rate

This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
Unemployment rate : 4.2% (2005 est.)

Population below poverty line

Population below poverty line : NA%

Household income or consumption by percentage share

Data on household income or consumption come from household surveys, the results adjusted for household size. Nations use different standards and procedures in collecting and adjusting the data. Surveys based on income will normally show a more unequal distribution than surveys based on consumption. The quality of surveys is improving with time, yet caution is still necessary in making inter-country comparisons.
Household income or consumption by percentage share - lowest 10% : NA%
Household income or consumption by percentage share - highest 10% : NA%

Budget

This entry includes revenues, expenditures, and capital expenditures. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Budget - revenues : $72.07 million
Budget - expenditures : $72.43 million (FY04/05 est.)

Fiscal year

Fiscal year : 1 October - 30 September

Inflation rate (consumer prices)

This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
Inflation rate (consumer prices) : 2.7% (2005 est.)

Agriculture - products

This entry is an ordered listing of major crops and products starting with the most important.
Agriculture - products : coconuts, copra, cassava (tapioca), sweet potatoes; fish

Industries

This entry provides a rank ordering of industries starting with the largest by value of annual output.
Industries : tourism, craft items (from shell, wood, pearls), construction, garment making

Industrial production growth rate

This entry gives the annual percentage increase in industrial production (includes manufacturing, mining, and construction).
Industrial production growth rate : NA%

Electricity

Electricity - production by source : NA

Current account balance

This entry records a country's net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net transfer payments (such as pension funds and worker remittances) to and from the rest of the world during the period specified. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Current account balance : $15.09 million (FY03/04)

Exports

This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Exports : $5.882 million f.o.b. (2004 est.)

Exports - commodities

This entry provides a listing of the highest- valued exported products; it sometimes includes the percent of total dollar value.
Exports - commodities : shellfish, tuna, copra, garments

Exports - partners

This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.
Exports - partners : US, Japan, Singapore (2006)

Imports

This entry provides the total US dollar amount of merchandise imports on a c.i.f. (cost, insurance, and freight) or f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Imports : $107.3 million f.o.b. (2004 est.)

Imports - commodities

This entry provides a listing of the highest- valued imported products; it sometimes includes the percent of total dollar value.
Imports - commodities : machinery and equipment, fuels, metals; foodstuffs

Imports - partners

This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.
Imports - partners : US, Singapore, Japan, South Korea (2006)

Economic aid

Economic aid - recipient : $23.46 million (2005)

Debt - external

This entry gives the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Debt - external : $0 (FY99/00)

Market value of publicly traded shares

This entry gives the value of shares issued by publicly traded companies at a price determined in the national stock markets on the final day of the period indicated. It is simply the latest price per share multiplied by the total number of outstanding shares, cumulated over all companies listed on the particular exchange.
Market value of publicly traded shares : $NA

Currency (code)

Currency (code) : US dollar (USD)

Currency code

Currency code : USD

Exchange rates

This entry provides the official value of a country's monetary unit at a given date or over a given period of time, as expressed in units of local currency per US dollar and as determined by international market forces or official fiat. The International Organization for Standardization (ISO) 4217 alphabetic currency code for the national medium of exchange is presented in parenthesis.
Exchange rates : the US dollar is used

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