Palau and ADB

In the Spotlight

  • ADB's Pacific Regional Operations Business Plan 2016–2018

    ADB’s interventions in the Pacific should help countries reduce the high cost of doing business and providing services, develop capacity to manage risks from economic shocks, natural disasters, and climate change, as well as promote the creation of competitive high value-added goods and services.

  • ADB to Support High-Speed Internet for Palau

    ADB has approved two loans amounting to $25 million for a submarine cable project which will support the development of a fiber-optic cable system linking Palau to the Internet cable hub in Guam. 

  • More Hotels Needed to Support Tourism Growth in Palau

    Visitor arrivals continued ascending rapidly in Palau in FY2015, growing by 35.2%. However, further growth may be constrained until new accommodations begin to operate in FY2017. Download the latest Pacific Economic Monitor

  • 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.

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.)