Economy

Economy—overview: The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force relying heavily on financial assistance from the US. The population enjoys a per capita income of more than twice that of the Philippines and much of Micronesia. Long-run 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.

GDP: purchasing power parity—$160 million (1997 est.)

note: GDP numbers reflect US spending

GDP—real growth rate: 10% (1997 est.)

GDP—per capita: purchasing power parity—$8 800 (1997 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: 7%

Budget:

revenues: $52.9 million

expenditures: $59.9 million including capital expenditures of $NA (1997 est.)

Industries: tourism craft items (from shell wood pearls) some commercial fishing and agriculture

Industrial production growth rate: NA%

Electricity—capacity: 62 000 kW (1995)

Electricity—production: 195 million kWh (1995)

Electricity—consumption per capita: 11 704 kWh (1995)

Agriculture—products: coconuts copra cassava (tapioca) sweet potatoes

Exports:

total value: $14.3 million (f.o.b. 1996)

commodities: trochus (type of shellfish) tuna copra handicrafts

partners: US Japan

Imports:

total value: $72.4 million (f.o.b. 1996)

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 the end 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