Economy of Palau

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Economy of Palau

Rock Islands in Palau – Such scenery has helped invite tourism and build up Palau's economy.
Currency	United States dollar
Fiscal year	1 October – 30 September
Statistics
GDP	$257,700,000
GDP growth	0.8% (2016) −3.5% (2017) 1.7% (2018) 0.3% (2019e)[1]
GDP per capita	$16,736 (nominal, 2019 est.)[1] $16,235 (PPP, 2019 est.)[1]
GDP by sector	agriculture (3%), industry (19%), services (78%) (2016 estimate)[2]
Inflation (CPI)	1.574% (2018)[1]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Palau consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the United States. The population enjoys a per capita income of more than twice that of the Philippines and much of Micronesia. Long-term prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rising prosperity of leading East Asian countries.

Palau's per capita GDP of $17,000 makes it one of the wealthier Pacific Island states. Nominal GDP increased by an annual average of nearly 14% from 1983 to 1990, and by an annual rate of over 10% from 1991 to 1997. Growth turned sharply negative in 1998 and 1999 as a result of the 1997 Asian financial crisis.