Palau and ADB
In the Spotlight
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.
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.
A ramping up of natural gas exports in Papua New Guinea (PNG) is expected to push the Pacific region’s average GDP growth to 10.7% this year, a new ADB report says.
ADB-wide sovereign approvals in the Pacific has risen substantially since 2010, reaching almost $1.8 billion in 2013. ADB is assessing and updating the Pacific Approach, which will continue to guide its operations in the region.
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, 2015-2017 for Palau focuses on improving public sector effectiveness, facilitating private sector development, delivering safe water and sanitation services, and improving connectivity.
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.)