Palau Economy
East Asia & Pacific · High income · Capital: Koror
GDP Annual Growth Rate in Palau decreased to 6.29 percent in 2025 from 12.01 percent in 2024. Inflation Rate in Palau decreased to -0.42 percent in 2025 from 2.23 percent in 2024.
GDP Growth Rate
Real GDP, annual % change. Hatched bars are IMF projections.
Inflation Rate
Annual data, %. Source: World Bank.
Key Highlights
- Real GDP grew 6.3% in 2025 (previous year: 12.0%).
- Consumer price inflation was -0.4% in 2025, compared with 2.2% in the previous period.
- General government debt was 52.8% of GDP in 2025.
- The IMF projects real GDP growth of 4.3% for 2026 (World Economic Outlook projection).
Main Indicators
| Indicator | Last | Previous | Period |
|---|---|---|---|
| GDP Annual Growth Rate | 6.3% | 12.0% | 2025 |
| Inflation Rate | -0.4% | 2.2% | 2025 |
| Government Debt to GDP | 52.8% | 60.1% | 2025 |
| Balance of Trade | -$0.1B | -$0.2B | 2024 |
| Current Account to GDP | -11.6% | -15.5% | 2025 |
| GDP | $0.3B | $0.3B | 2025 |
GDP
| Indicator | Last | Previous | Period |
|---|---|---|---|
| GDP per Capita | $19,532 | $18,169 | 2025 |
| GDP per Capita PPP | $23,052 | $21,059 | 2025 |
| Gross National Income | $0.4B | $0.3B | 2025 |
| GDP from Agriculture | 2.7% | 3.0% | 2024 |
| GDP from Industry | 13.0% | 10.1% | 2024 |
| GDP from Manufacturing | 1.2% | 1.1% | 2024 |
| GDP from Services | 73.1% | 74.9% | 2024 |
| Gross Fixed Capital Formation | 35.8% | 35.4% | 2024 |
| Household Consumption to GDP | 74.6% | 81.1% | 2024 |
Labour
| Indicator | Last | Previous | Period |
|---|---|---|---|
| Population | 0.02M | 0.02M | 2025 |
Prices
| Indicator | Last | Previous | Period |
|---|---|---|---|
| GDP Deflator Growth | 1.0% | 3.9% | 2025 |
Trade
| Indicator | Last | Previous | Period |
|---|---|---|---|
| Current Account | -$0.1B | -$0.1B | 2023 |
| Exports | $0.1B | $0.1B | 2024 |
| Imports | $0.2B | $0.2B | 2024 |
| Foreign Direct Investment | $0.06B | $0.06B | 2025 |
| Remittances | $0.00B | $0.00B | 2023 |
| Terms of Trade | 96.5 | 97.2 | 2024 |
| Tourist Arrivals | 0.02M | 0.09M | 2020 |
| Tourism Revenues | $0.12B | $0.15B | 2017 |
Government
| Indicator | Last | Previous | Period |
|---|---|---|---|
| Government Budget | -0.4% | 0.6% | 2025 |
| Tax Revenue to GDP | 18.1% | 18.4% | 2020 |
Palau economy explained in simple words
Size of the economy
The economy of Palau produced goods and services worth $0.3B in 2025, making it the 211th largest of 214 economies with data.
With a population of about 0.0 million, GDP per person is $19,532. The World Bank classifies Palau as a “high income” economy.
Economic growth
Real GDP grew 6.3% in 2025, compared with world growth of 3.5% (IMF).
Over the last 10 years growth averaged -0.1% a year, ranging from -11.9% to 12.0%.
The IMF projects growth of 4.3% in 2026.
Prices and interest rates
Consumer price inflation was -0.4% in 2025.
Government finances
General government debt was 52.8% of GDP in 2025, compared with a median of 52.9% across 191 economies.
The government budget balance was -0.4% of GDP (2025) — a deficit, meaning spending exceeded revenue.
Trade and external position
The current account was -11.6% of GDP in 2025 — a deficit with the rest of the world.
Exports of goods and services were $0.1B and imports $0.2B.
Structure of the economy
By sector, value added is split roughly as: services 73.1%, industry 13.0%, agriculture 2.7% of GDP.
How to read this page
The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.
The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.
Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.
Frequently asked questions
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Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.