Palau and ADB

In the Spotlight

  • Palau: Economy

    Higher growth is now expected for Palau because tourist arrivals have outpaced expectations, although there are rising concerns about the environmental sustainability of recent increases in visitor numbers.

  • ADB Partners with Australia to Support Pacific Businesses

    The Government of Australia and ADB have established the Pacific Business Investment Facility, an advisory service for Pacific island businesses requiring commercial finance for growth, diversification, or consolidation of their businesses.

  • North Pacific Growth Outlook Up as Palau Tourism Climbs

    Growth in the North Pacific is expected to rise in the near term due to favorable external conditions, stimulus from infrastructure projects, and continued tourism growth in Palau, says a new report from ADB.

  • Our Work in the Pacific

    For almost half a century, ADB has been partnering with Pacific developing countries to help them grow and prosper. ADB has scaled up its assistance in the Pacific to more than $2 billion by the end of 2014 from about $500 million in 2004. The vast majority of this support goes into building infrastructure.

An archipelagic state in the Northwest Pacific, the Republic of Palau’s geographic location, small markets, and tourism-based economy make it vulnerable to external economic shocks, the impacts of climate change, and extreme weather events. With a population of around 20,000, the small domestic market is an obstacle to building economies of scale. Transport costs are high, and cargo volumes are small. Because Palauan labor is fully employed, there is also a reliance on foreign labor to meet demand.

ADB’s country operations business plan, 2016-2018 for Palau continues to support the government’s priorities on improving public sector effectiveness, facilitating private sector development, delivering safe water and sanitation services, and improving connectivity. 


Funding Information

Fast Facts

0.02(2014) Population in millions

-1.5%(2009-2014) Average annual population growth rate

24.9%* Population living below the national poverty line (*Preliminary/interim figure; or refers to period before 2009.)