Palau: Asian Development Bank Member Fact Sheet 2018

Abstract

Drawing on Palau’s exceptional natural and cultural resources, tourism underpins the country’s economy. A recent downturn in economic activity, however, illustrates that Palau remains vulnerable to external economic shocks as well as climate change and other environmental and weather-related risks. Reforms to improve and simplify Palau’s business regulations are needed to promote private sector development, but slow progress on simplifying the country’s tax policy has limited prospects for creating the conditions necessary for more inclusive development.