Palau's small economy thrives on tourism, driven by its pristine coral reefs, marine biodiversity, and World War II historical sites, attracting visitors mainly from Asia. Tourism accounts for a significant portion of GDP, supported by fishing and subsistence agriculture, including taro and coconuts. The Compact of Free Association with the United States provides substantial financial aid, supporting government services and infrastructure. Limited arable land and reliance on imports for food and fuel create vulnerabilities. Palau's focus on environmental conservation, including its shark sanctuary, boosts eco-tourism but limits industrial growth, keeping the economy dependent on external aid and sustainable practices.
World Bank Data. 2000-2024. Last updated Oct 2025.
Refer to the latest year-over-year Palau GDP statistics.