Palau: Economy | Asian Development Bank

Palau: Economy

The government projects a fiscal surplus equal to 4.0% of GDP in FY2017, down from the 4.7% surplus realized in FY2016 largely because of declining tourism receipts. However, the fiscal surplus is expected to hit 5.0% of GDP in FY2018 with an expected recovery in visitor arrivals and a planned increase in the departure tax to be implemented in 2018. The current account deficit is expected to widen marginally in FY2017, partly because of lower tourism receipts, but slightly less than anticipated in the Asian Development Outlook 2017 with a smaller increase in imports of project construction materials and stable fuel imports. The continued implementation of these projects in the near term is expected to widen the deficit further in FY2018, but less than forecast in April. Read more from Asian Development Outlook 2017 Update


Economic forecasts for Pacific countries

Country 2017f 2018f
Cook Islands 5.0 5.0
Fiji 3.6 3.9
Kiribati 2.0 2.3
Marshall Islands 4.0 2.5
Micronesia, Federated States of 2.0 2.0
Nauru 4.0 –4.0
Palau 0.5 3.5
Papua New Guinea 2.5 2.8
Samoa 3.0 1.0
Solomon Islands 3.0 3.0
Timor-Leste 4.0 6.0
Tonga 2.8 3.5
Tuvalu 3.2 3.0
Vanuatu 4.5 4.0
Average 2.9 3.2
Country 2017f 2018f
Cook Islands –0.1 0.5
Fiji 3.5 2.5
Kiribati 2.0 2.0
Marshall Islands 0.5 1.0
Micronesia, Federated States of 1.5 2.0
Nauru 6.0 2.0
Palau 1.5 2.0
Papua New Guinea 7.5 7.5
Samoa 1.4 2.0
Solomon Islands 0.5 1.0
Timor-Leste 1.2 3.0
Tonga 2.5 2.5
Tuvalu 2.9 2.5
Vanuatu 2.8 3.3
Average 5.3 5.3
Country 2017f 2018f
Cook Islands 27.6 28.7
Fiji –4.2 –3.6
Kiribati –2.4 –3.0
Marshall Islands 5.0 7.0
Micronesia, Federated States of 4.5 4.5
Nauru 0.5 –1.8
Palau –12.0 –14.0
Papua New Guinea 7.7 6.7
Samoa –2.9 –4.2
Solomon Islands –6.0 –9.0
Timor-Leste –5.9 –36.4
Tonga –7.7 –10.0
Tuvalu –20.2 –24.4
Vanuatu –10.0 –9.5
Average 2.8 –0.8

f = forecast number.

Source: Asian Development Outlook 2017 Update