Palau

Introduction

Background
After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted not to join the Federated States of Micronesia in 1978. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993, entering into force the next year.

Geography

Area
total : 459 sq km
land: 459 sq km
water: 0 sq km

Climate
tropical; hot and humid; wet season May to November

Natural resources
forests, minerals (especially gold), marine products, deep-seabed minerals

People and Society

Population
total: 21,864 (2024 est.)

Ethnic groups
Palauan (Micronesian with Malayan and Melanesian admixtures) 70.6%, Carolinian 1.2%, Asian 26.5%, other 1.7% (2020 est.)

Languages
Palauan (official on most islands) 65.2%, other Micronesian 1.9%, English (official) 19.1%, Filipino 9.9%, Chinese 1.2%, other 2.8% (2015 est.)

Religions
Roman Catholic 46.9%, Protestant 30.9% (Evangelical 24.6%, Seventh Day Adventist 5%, other Protestant 1.4%), Modekngei 5.1% (indigenous to Palau), Muslim 4.9%, other 12.3% (2020 est.)

Population growth rate
0.38% (2024 est.)

Government

Government type
presidential republic in free association with the US

Capital
name: Ngerulmud

Executive branch
chief of state: President Surangel WHIPPS, Jr. (since 21 January 2021)
head of government: President Surangel WHIPPS, Jr. (since 21 January 2021)

Diplomatic representation in the US
chief of mission: Ambassador Hersey KYOTA (since 12 November 1997)

Diplomatic representation from the US
chief of mission: Ambassador Joel EHRENDREICH (since 29 September 2023)

Economy

Economic overview
high-income Pacific island economy; environmentally fragile; subsistence agriculture and fishing industries; US aid reliance; rebounding post-pandemic tourism industry and services sector; very high living standard and low unemployment

Real GDP (purchasing power parity)
$280.025 million (2023 est.)
$274.866 million (2022 est.)
$278.538 million (2021 est.)

Real GDP per capita
$15,800 (2023 est.)
$15,500 (2022 est.)
$15,700 (2021 est.)

Exports
$24.48 million (2022 est.)
$10.566 million (2021 est.)
$52.897 million (2020 est.)

Exports - partners
India 41%, Turkey 26%, Taiwan 10%, USA 9%, Japan 5% (2023)

Exports - commodities
ships, refined petroleum (2023)

Imports
$216.681 million (2022 est.)
$169.938 million (2021 est.)
$207.224 million (2020 est.)

Imports - partners
Italy 32%, China 25%, USA 11%, Turkey 10%, Japan 6% (2023)

Imports - commodities
ships, refined petroleum, additive manufacturing machines, cars, plastic products (2023)

Human Development Index

The country's Human Development Index (HDI) is 0.786, ranking it 84th out of 193 countries tested. (more information)