Palau Military, Economy and Transportation

Palau Military


Economic overview: The main sectors of the economy are subsistence farming and fisheries. The government is the main employer of the labor force, relying heavily on US financial support. The per capita income is twice that of the Philippines and most of Micronesia. The prospects for the tourism sector have improved significantly due to the spread of air travel to the Pacific region and the growing prosperity of the leading states of East Asia.
GDP: Purchasing Power Parity $129 million (1998 est.); note: GDP figures reflect US spending.
Real GDP growth rate: -1.4% (1998 est.).
GDP per capita: at purchasing power parity – $7,100 (1998 est.).
The composition of GDP by sectors of the economy: agriculture: no data; industry: no data; service sector: no data.
Proportion of the population below the poverty line: no data available.
Percentage distribution of household income or consumption: for the poorest 10% of households: n/a; by top 10% of households: no data.
Inflation rate at consumer prices: no data.
Labor force: 8,300 (1999).
Employment structure: no data.
Unemployment rate: 2.3% (2000 est.).
Budget: revenues: $57.7 million; expenses: $80.8 million, including capital expenditures of $17.1 million (FY98-99 est.).
Spheres of economy: tourism, handicrafts (from shells, wood, pearls), construction, clothing.
Growth in industrial production: no data available.
Electricity generation:
Sources of electricity production:
Electricity consumption: Electricity
export: Electricity
Agricultural products: coconuts, copra, cassava (tapioca), sweet potatoes.
Export: $14.3 million (free on board, 1996)
Exports: snails rhotatrochus, tuna, copra, handicrafts.
Export partners: USA, Japan.
Imports: $126 million (free on board, FY99-2000)
Import articles: machinery and equipment, fuel, food.
Import partners: USA.
External debt: $0 (FY99-2000) Economic aid recipient: $155.8 million (1995); note – the agreement on free association with the United States, which came into force on October 1, 1994 after the end of the UN mandate, will provide Palau with about $ 700 million over 15 years in exchange for the US military presence on the islands.
Economic aid donor:
Currency: US dollar.
Currency code: USD.
Exchange rate: US dollar is used.
Fiscal year: October 1-September 30.


Telecommunications Telephone lines: 1,500
Mobile cell phones: 0 (1988).
Telephone system: internal: no data; international: satellite earth station 1 Intelsat (Pacific Ocean).
Broadcast stations: AM – 1, FM – 0, shortwave – 1 (1998).
Radio receivers: 12,000 (1997).
Television broadcast stations: 1 (1997).
TVs: 11,000 (1997).
Internet country code: pw
Internet service providers: not available.
Number of users: no data.


Transport Railways: 0 km.
Roads: total: 61 km; coated: 36 km; unpaved: 25 km.
Ports and harbours: Koror.
Merchant fleet: none (2000 est.).
Airports: 3 (2000 est.).
Airports with paved runways: total: 1; from 1524 to 2437 m: 1 (2000 est.).
Airports with unpaved runways: total: 2; from 1524 to 2437 m: 2 (2000 est.).

Armed forces

Branches of the armed forces: no data. See to know more about Palau Military.
Conscription age:
Total military manpower:
Eligible for military service:
Number of persons reaching draft age each year:
Military spending in dollar terms: not available.
Military spending as part of GDP: no data available. Military – note: US is responsible for defense; in accordance with the agreement on free association between Palau and the United States provides for a US military presence on the islands for 50 years.

Palau Military