AEIR 2019/2020

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
Integration Index

0.36

Free Trade Agreements

66

Crossborder & Infra Initiatives

11

Money & Finance Initiatives

5

Regional Public Goods Initiatives

14


Total Trade, in million US$
Inward FDI flows (BOP) in million US$
Outward Portfolio Equity Investment
Outward Portfolio Debt Investment
Ratio of Migrants to Population
Outbound Tourism
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 1.9 (Dec17)0.4 0.0
Merchandise Export Growth 1 -51.9 (Feb20)-51.9 -51.1
Exchange Rate Index 2 100.0 (May20)100.0 100.0
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: .

Initiatives / FTAs

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