t is the major employer of the work force,
relying heavily on financial assistance from the US. Business and
tourist arrivals numbered 50,000 in FY00/01. The population enjoys a
per capita income twice 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 - $174 million
note: GDP estimate includes US subsidy (2001 est.)

GDP - real growth rate:
1% (2001 est.)

GDP - per capita:
purchasing power parity - $9,000 (2001 est.)

GDP - composition by sector:
agriculture: NA
industry: NA
services: NA

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
3.4% (2000 est.)

Labor force:
9,845 (2000)

Labor force - by occupation:
agriculture 20%, industry NA, services NA (1990)

Unemployment rate:
2.3% (2000 est.)

Budget:
revenues: $57.7 million
expenditures: $80.8 million, including capital expenditures of $17.1
million (FY98/99 est.)

Agriculture - products:
coconuts, copra, cassava (tapioca), sweet potatoes

Industries:
tourism, craft items (from shell, wood, pearls), construction,
garment making

Industrial production growth rate:
NA

Exports:
$18 million f.o.b. (2001 est.)

Exports - commodities:
shellfish, tuna, copra, garments

Exports - partners:
US, Japan, Singapore (2000)

Imports:
$99 million f.o.b. (2001 est.)

Imports - commodities:
machinery and equipment, fuels, metals; foodstuffs

Imports - partners:
US, Guam, Japan, Singapore, Korea (2000)

Debt - external:
$0 (FY99/00)

Economic aid - recipient:
$155.8 million ; note - the Compact of Free Association with the
US, entered into after the end of the UN trusteeship on 1 October
1994, provides Palau with up to $700 million in US aid over 15 years
in return for furnishing military facilities

Currency:
US dollar (USD)

Currency code:
USD

Exchange rates:
the US dollar is used

Fiscal year:
1 October - 30 September

Communications Palau

Telephones - main lines in use:
6,700 (2002)

Telephones - mobile cellular:
1,000 (2002)

Telephone system: