Palau

1980

2026

2030

Palau

1980

2026

2030

Palau Economic Statistics (2026)

What to know

GDP per capita (PPP) in 2026: $19,991—a middle income level.

The economy experienced a recession in recent years.

The government runs a fiscal surplus, providing room for future investment or debt reduction.

Key statistics for 2026

GDP per capita (PPP)

$19,991

GDP growth

+3.3%

Inflation rate

2.9%

Key terms

GDP: — Gross Domestic Product—the total value of goods and services produced in a country annually.
GDP PPP: — GDP adjusted for purchasing power parity—what money actually buys in each country.
GDP per capita: — GDP divided by population—a measure of average economic output per person.
Inflation rate: — Annual percentage increase in the general price level of goods and services.
Fiscal balance: — Government revenue minus expenditure. Surplus if positive, deficit if negative.
Current account: — Net flow of goods, services, and transfers with the rest of the world.

Output & Growth

How has the economy recovered from recession?

Total economic output and annual growth rate

Total GDP is $0 billion, with steady growth of 3.3% in 2026.

Living Standards

How wealthy are citizens on average?

Average economic output per person

GDP per capita is $19,991 in purchasing power terms ($20,718 nominal).

Prices & Employment

What are inflation and unemployment rates?

Consumer price inflation and labor market conditions

Inflation is 2.9% in 2026.

Government Finances

How does the government manage its finances?

Government debt, revenue, and expenditure as percentage of GDP

Government debt is moderate at 59% of GDP. The government collects more than it spends (revenue: 53.1%, expenditure: 51.6% of GDP).

External & Fiscal Balance

Why does the country run large deficits?

Fiscal balance and current account as percentage of GDP

The country is running a fiscal surplus of 1.5% and a current account deficit of 14.2% of GDP.

The bottom line

Palau is a middle-income economy with GDP per capita (PPP) of $20k. After a recent recession, growth has returned. The government is running a fiscal surplus.