AEIR 2021

The economy contracted 3.1% in FY2019 as visitor arrivals declined by 22.6%. The political unrest in Hong Kong, China along with restrictive travel measures in the People’s Republic of China and Macau, China cut visitor arrivals by almost half. Arrivals from Japan, Palau’s second biggest market since 2014, also fell by almost 20.0%. The decline was partially offset by a 23.9% increase in arrivals from Taipei,China. Infrastructure projects funded by development partners helped limit the economic contraction. Palau’s economy is forecast to contract by 4.5% in FY2020 from the impact of COVID-19 related travel bans, recovering to 1.2% in FY2021, as travel restrictions are gradually lifted.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 1.9 (Dec17)0.4
Merchandise Export Growth 1 -6.0 (Nov20)-6.0 -37.0
Exchange Rate Index 2 100.0 (Feb21)100.0 100.0
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: .

Initiatives / FTAs