Economy of Palau
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|
Currency | United States dollar |
---|---|
1 October – 30 September | |
Statistics | |
GDP | $257,700,000 |
GDP growth |
|
GDP per capita | |
GDP by sector | agriculture (3%), industry (19%), services (78%) (2016 estimate)[2] |
1.574% (2018)[1] | |
The economy of Palau consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the United States. The population enjoys a per capita income of more than twice that of the Philippines and much of Micronesia. Long-term 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.
Palau's
Industries
The service sector dominates the Palauan economy, contributing more than 80% of GDP and employing three-quarters of the work force. The government alone employs nearly 30% of workers. One of the government's main responsibilities is administering external assistance. Under the terms of the Compact of Free Association with the United States, Palau will receive more than $450 million in assistance over 15 years, $30 million per year, and is eligible to participate in more than 40 federal programs. The first grant of $142 million was made in 1994. Further annual payments in lesser amounts will be made through 2009. U.S. grants in 1999 totaled $24 million.
Construction is the most important industrial activity, contributing over 9% of GDP. Several large infrastructure projects, including the rebuilding of the bridge connecting Koror and Babeldaob Islands after its collapse in 1996 and the construction of a highway around the rim of Babeldaob, boosted activity at the end of the 1990s.
Agriculture is mainly on a subsistence level, the principal crops being coconuts, root crops, and bananas. Fishing is a potential source of revenue, but the islands' tuna output dropped by over one-third during the 1990s.
There are no Patent Laws in Palau. Gazetteer – Patents Archived 2018-09-26 at the Wayback Machine
Economic challenges
The main economic challenge confronting Palau is to ensure the long-term viability of its economy by reducing its reliance on foreign assistance. Palau has created a trust fund to be drawn upon after the cessation of Compact grants, the value of which had grown to $140 million by the beginning of 2009. Also, in the late 1990s, Palau was affected by the
Tourism challenges
In order to tackle mass tourism, the Palau Legacy Project, a sustainable tourism body, created a visa policy for the island of Palau to protect the nation from environmental damage. The "Palau Pledge[4]" was the most awarded campaign of 2018 according to the WARC Creative 100 index.[5]
Economic statistics
Income
Gross Domestic Product (GDP): purchasing power parity – $132 million (2009 est.) (GDP estimate includes U.S. subsidy)
GDP – real growth rate: 1% (2009 est.)
GDP – per capita: purchasing power parity – $8 500 (2009 est.)
GDP – composition by sector
- agriculture: N/A
- industry: N/A
- services: N/A
Population below poverty line: N/A
Household income or consumption by percentage share
- lowest 10%: N/A
- highest 10%: N/A
Inflation
Inflation rate (consumer prices): 3.4% (2000 est.)
Workforce
Labor force: 10 200 (2000)
Labor force – by occupation
- Agriculture: 20%
- Industry: N/A
- Services: N/A
(1990)
Unemployment rate: 4.2% (2000 est.)
Budget
- Revenues: $57.81 million
- Expenditures: $80.8 million, including capital expenditures of $17.1 million (FY 98/99 est.)
Industries
Dominant industries include tourism, craft items (from shell, wood, pearls), construction, and garment making.
Industrial production growth rate: N/A
Electricity
Electricity – production: 200 MWh (1996)
Electricity – production by source
- Fossil fuels: 85%
- Hydro: 15%
- Nuclear: 0%
- Other: 0%
(1996)
Electricity – consumption: 200 MWh (1996)
Electricity – exports: 0 kWh (1996)
Electricity – imports: 0 kWh (1996)
Trade
Agriculture – products: coconuts, copra, cassava (tapioca), sweet potatoes
Exports: $18 million (f.o.b., 2001)
Exports – commodities: trochus (type of shellfish), tuna, copra, handicrafts
Exports – partners: Japan 70.1%, South Korea 15.1% United States 7.1% (2019)[6]
Imports: $99 million (f.o.b., 2001 est.)
Imports – commodities: machinery and equipment, fuels, metals, foodstuffs
Imports – partners: South Korea 18.7%, China 18.2%, Taiwan 16.9%, United States 16.5%, Japan 16%, (2019)
Debt and aid
Debt – external: $18.4 Billion (2014 estimate).[7] Palau ranks as one of the countries with the highest external debt as a share of GDP.
Economic aid – recipient: $155.8 million. Note: the Compact of Free Association with the U.S., entered into after the end of the UN
Currency
1 United States dollar (US$) = 100 cents
Exchange rates: U.S. currency is used
Fiscal year
1 October – 30 September
References
- ^ a b c d "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 20 October 2019.
- ^ "The World Factbook – Palau". Central Intelligence Agency. Retrieved July 1, 2019.
- ^ "Palau Economy". Asian Development Bank. Retrieved 26 April 2021.
- ^ Stuart Alexander (2018-04-29), Palau Pledge – Case Study, archived from the original on 2021-12-11, retrieved 2019-03-01
- ^ "2018's Most Awarded Campaign: Havas' Palau Pledge". www.mediapost.com. Retrieved 2019-03-01.
- ^ "Palau (PLW) Exports, Imports, and Trade Partners | OEC". OEC – The Observatory of Economic Complexity.
- ^ "Palau". CIA World Factbook. Retrieved 31 May 2022.