Pacific Finance Sector Briefs: Palau

Abstract

Palau is an archipelago of over 500 islands, part of the Micronesia region of the Western Pacific. Its economy is driven mainly by the tourism sector, with annual tourism receipts estimated to represent about 50% of gross domestic product (GDP). The overall service sector, which incorporates tourism, accounts for 88% of the country’s total output, while industry (mainly construction) accounts for only 9% of GDP, and agriculture (including fisheries) just 3%.