Introduction
Background
After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted for independence in 1978 rather than join the Federated States of Micronesia. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993. It entered into force the following year when the islands gained independence.
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Geography
Location
Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
Geographic coordinates
7 30 N, 134 30 E
Map references
Oceania
Land boundaries
total: 0 km
Coastline
1,519 km
Maritime claims
territorial sea: 12 nm
exclusive economic zone: 200 nm
contiguous zone: 24 nm
continental shelf: 200 nm
Climate
tropical; hot and humid; wet season May to November
Terrain
varying topography from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs
Elevation
lowest point: Pacific Ocean 0 m
highest point: Mount Ngerchelchuus 242 m
Natural resources
forests, minerals (especially gold), marine products, deep-seabed minerals
Land use
agricultural land: 10.8% (2011 est.)
arable land: 2.2% (2011 est.)
permanent crops: 4.3% (2011 est.)
permanent pasture: 4.3% (2011 est.)
forest: 87.6% (2011 est.)
other: 1.6% (2011 est.)
Irrigated land
0 sq km (2012)
Population distribution
most of the population is located on the southern end of the main island of Babelthuap
Natural hazards
typhoons (June to December)
Environment - current issues
inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging, illegal and destructive fishing practices, and overfishing; climate change contributes to rising sea level and coral bleaching; drought
Environment - international agreements
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
Geography - note
westernmost archipelago in the Caroline chain, consists of six island groups totaling more than 300 islands; includes World War II battleground of Beliliou (Peleliu) and world-famous Rock Islands
People and Society
Nationality
noun: Palauan(s)
adjective: Palauan
Ethnic groups
Palauan (Micronesian with Malayan and Melanesian admixtures) 73%, Carolinian 2%, Asian 21.7%, caucasian 1.2%, other 2.1% (2015 est.)
Languages
Palauan (official on most islands) 65.2%, other Micronesian 1.9%, English (official) 19.1%, Filipino 9.9%, Chinese 1.2%, other 2.8% (2015 est.)
note: Sonsoralese is official in Sonsoral; Tobian is official in Tobi; Angaur and Japanese are official in Angaur
Religions
Roman Catholic 45.3%, Protestant 34.9% (includes Evangelical 26.4%, Seventh Day Adventist 6.9%, Assembly of God .9%, Baptist .7%), Modekngei 5.7% (indigenous to Palau), Muslim 3%, Mormon 1.5%, other 9.7% (2015 est.)
Age structure
0-14 years: 18.68% (male 2,090/female 1,961)
15-24 years: 15.86% (male 1,723/female 1,716)
25-54 years: 45.33% (male 6,026/female 3,804)
55-64 years: 10.68% (male 853/female 1,463)
65 years and over: 9.45% (male 501/female 1,548) (2020 est.)
Median age
total: 33.9 years
male: 32.9 years
female: 35.9 years (2020 est.)
Population distribution
most of the population is located on the southern end of the main island of Babelthuap
Urbanization
urban population: 81% of total population (2020)
rate of urbanization: 1.77% annual rate of change (2015-20 est.)
Major urban areas - population
277 NGERULMUD (capital) (2018)
Sex ratio
at birth: 1.07 male(s)/female
0-14 years: 1.07 male(s)/female
15-24 years: 1 male(s)/female
25-54 years: 1.58 male(s)/female
55-64 years: 0.58 male(s)/female
65 years and over: 0.32 male(s)/female
total population: 1.07 male(s)/female (2020 est.)
Infant mortality rate
total: 9.8 deaths/1,000 live births
male: 11.2 deaths/1,000 live births
female: 8.3 deaths/1,000 live births (2020 est.)
Life expectancy at birth
total population: 74.1 years
male: 70.9 years
female: 77.5 years (2020 est.)
Drinking water source
improved: urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved: urban: 0% of population
rural: 0% of population
total: 0% of population (2017 est.)
Current Health Expenditure
12% (2017)
Physicians density
1.42 physicians/1,000 population (2014)
Hospital bed density
4.8 beds/1,000 population (2010)
Sanitation facility access
improved: urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved: urban: 0% of population
rural: 0% of population
total: 0% of population (2017 est.)
Major infectious diseases
degree of risk: high (2020)
food or waterborne diseases: bacterial diarrhea
vectorborne diseases: malaria
Literacy
definition: age 15 and over can read and write
total population: 96.6%
male: 96.8%
female: 96.3% (2015)
School life expectancy (primary to tertiary education)
total: 17 years
male: 16 years
female: 17 years (2013)
Government
Country name
conventional long form: Republic of Palau
conventional short form: Palau
local long form: Beluu er a Belau
local short form: Belau
former: Trust Territory of the Pacific Islands, Palau District
etymology: from the Palauan name for the islands, Belau, which likely derives from the Palauan word "beluu" meaning "village"
Government type
presidential republic in free association with the US
Capital
name: Ngerulmud
geographic coordinates: 7 30 N, 134 37 E
time difference: UTC+9 (14 hours ahead of Washington, DC, during Standard Time)
etymology: the Palauan meaning is "place of fermented 'mud'" ('mud' being the native name for the keyhole angelfish); the site of the new capitol (established in 2006) had been a large hill overlooking the ocean, Ngerulmud, on which women would communally gather to offer fermented angelfish to the gods
note: Ngerulmud, on Babeldaob Island, is the smallest national capital on earth by population, with only a few hundred people; the name is pronounced en-jer-al-mud; Koror, on Koror Island, with over 11,000 residents is by far the largest settlement in Palau; it served as the country's capital from independence in 1994 to 2006
Administrative divisions
16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol
Independence
1 October 1994 (from the US-administered UN trusteeship)
National holiday
Constitution Day, 9 July (1981), day of a national referendum to pass the new constitution; Independence Day, 1 October (1994)
Constitution
history: ratified 9 July 1980, effective 1 January 1981
amendments: proposed by a constitutional convention (held at least once every 15 years with voter approval), by public petition of at least 25% of eligible voters, or by a resolution adopted by at least three fourths of National Congress members; passage requires approval by a majority of votes in at least three fourths of the states in the next regular general election; amended 1992, 2004, 2008
Legal system
mixed legal system of civil, common, and customary law
International law organization participation
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Citizenship
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of Palau
dual citizenship recognized: no
residency requirement for naturalization: note - no procedure for naturalization
Suffrage
18 years of age; universal
Executive branch
chief of state: President Tommy REMENGESAU (since 17 January 2013); Vice President Raynold OILUCH (since 19 January 2017); note - the president is both chief of state and head of government
head of government: President Tommy REMENGESAU (since 17 January 2013); Vice President Raynold OILUCH (since 19 January 2017)
cabinet: Cabinet appointed by the president with the advice and consent of the Senate; also includes the vice president; the Council of Chiefs consists of chiefs from each of the states who advise the president on issues concerning traditional laws, customs, and their relationship to the constitution and laws of Palau
elections/appointments: president and vice president directly elected on separate ballots by absolute majority popular vote in 2 rounds if needed for a 4-year term (eligible for a second term); election last held on 3 November 2020 (next to be held on November 2024)
election results: Surangel WHIPPS, Jr. elected president; percent of vote - Surangel WHIPPS, Jr.(independent) 57.4%, Raynold OILUCH (independent) 42.6%
Legislative branch
description: bicameral National Congress or Olbiil Era Kelulau consists of:
Senate (13 seats; members directly elected in single-seat constituencies by majority vote to serve 4-year terms)
House of Delegates (16 seats; members directly elected in single-seat constituencies by simple majority vote to serve 4-year terms)
elections:
Senate - last held on 1 November 2016 (next to be held on 3 November 2020)
House of Delegates - last held on 1 November 2016 (next to be held on 3 November 2020)
election results:
Senate - percent of vote - NA; seats - independent 13; composition - men 11, women 2, percent of women 15.4%
House of Delegates - percent of vote - NA; seats - independent 16; composition - men 14, women 2, percent of women 12.5%; note - total National Congress percent of women 13.8%
Judicial branch
highest courts: Supreme Court (consists of the chief justice and 3 associate justices organized into appellate trial divisions; the Supreme Court organization also includes the Common Pleas and Land Courts)
judge selection and term of office: justices nominated by a 7-member independent body consisting of judges, presidential appointees, and lawyers and appointed by the president; judges can serve until mandatory retirement at age 65
subordinate courts: National Court and other 'inferior' courts
International organization participation
ACP, ADB, AOSIS, FAO, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, IMSO, IOC, IPU, MIGA, OPCW, PIF, Sparteca, SPC, UN, UNAMID, UNCTAD, UNESCO, WHO
Diplomatic representation in the US
chief of mission: Ambassador Hersey KYOTA (since 12 November 1997)
chancery: 1701 Pennsylvania Avenue NW, Suite 300, Washington, DC 20036
telephone: [1] (202) 452-6814
FAX: [1] (202) 452-6281
consulate(s): Tamuning (Guam)
Diplomatic representation from the US
chief of mission: Ambassador Amy HYATT (since 9 March 2015)
telephone: [680] 587-2920
embassy: Omsangel/Beklelachieb, Airai 96940
mailing address: P. O. Box 6028, Koror, Republic of Palau 96940
FAX: [680] 587-2911
Flag description
light blue with a large yellow disk shifted slightly to the hoist side; the blue color represents the ocean, the disk represents the moon; Palauans consider the full moon to be the optimum time for human activity; it is also considered a symbol of peace, love, and tranquility
National symbol(s)
bai (native meeting house); national colors: blue, yellow
National anthem
name: "Belau rekid" (Our Palau)
lyrics/music: multiple/Ymesei O. EZEKIEL
note: adopted 1980
Economy
Economic overview
The economy is dominated by tourism, fishing, and subsistence agriculture. Government is a major employer of the work force relying on financial assistance from the US under the Compact of Free Association (Compact) with the US that took effect after the end of the UN trusteeship on 1 October 1994. The US provided Palau with roughly $700 million in aid for the first 15 years following commencement of the Compact in 1994 in return for unrestricted access to its land and waterways for strategic purposes. The population enjoys a per capita income roughly double that of the Philippines and much of Micronesia.
Business and leisure tourist arrivals reached a record 167,966 in 2015, a 14.4% increase over the previous year, but fell to 138,408 in 2016. Long-run prospects for tourism have been bolstered by the expansion of air travel in the Pacific, the rising prosperity of industrial East Asia, and the willingness of foreigners to finance infrastructure development. Proximity to Guam, the region's major destination for tourists from East Asia, and a regionally competitive tourist infrastructure enhance Palau's advantage as a destination.
GDP real growth rate
-3.7% (2017 est.)
0% (2016 est.)
10.1% (2015 est.)
GDP (purchasing power parity) - real
$264 million (2017 est.)
$274.2 million (2016 est.)
$274.1 million (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)
$292 million (2017 est.)
GDP - per capita (PPP)
$14,700 (2017 est.)
$15,200 (2016 est.)
$15,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 97Gross national saving
48.7% of GDP (2016 est.)
50.1% of GDP (2015 est.)
GDP - composition, by sector of origin
agriculture: 3% (2016 est.)
industry: 19% (2016 est.)
services: 78% (2016 est.)
GDP - composition, by end use
household consumption: 60.5% (2016 est.)
government consumption: 27.2% (2016 est.)
investment in fixed capital: 22.7% (2016 est.)
investment in inventories: 1.9% (2016 est.)
exports of goods and services: 55.2% (2016 est.)
imports of goods and services: -67.6% (2016 est.)
Ease of Doing Business Index scores
82.1 (2020)
Agriculture - products
coconuts, cassava (manioc, tapioca), sweet potatoes; fish, pigs, chickens, eggs, bananas, papaya, breadfruit, calamansi, soursop, Polynesian chestnuts, Polynesian almonds, mangoes, taro, guava, beans, cucumbers, squash/pumpkins (various), eggplant, green onions, kangkong (watercress), cabbages (various), radishes, betel nuts, melons, peppers, noni, okra
Industries
tourism, fishing, subsistence agriculture
Labor force - by occupation
agriculture: 1.2%
industry: 12.4%
services: 86.4% (2016)
Population below poverty line
24.9% NA (2006)
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
Budget
revenues: 193 million (2012 est.)
expenditures: 167.3 million (2012 est.)
Fiscal year
1 October - 30 September
Current account balance
-$53 million (2017 est.)
-$36 million (2016 est.)
Exports - partners
Japan 51.3%, US 15.8%, India 13.8%, Guam 8% (2017)
Exports - commodities
shellfish, tuna, other fish (many species)
Imports - commodities
machinery and equipment, fuels, metals; foodstuffs
Imports - partners
US 33.4%, Guam 15.8%, Japan 15.7%, China 13.5%, South Korea 5.3% (2017)
Reserves of foreign exchange and gold
$0 (31 December 2017 est.)
$580.9 million (31 December 2015 est.)
Debt - external
$18.38 billion (31 December 2014 est.)
$16.47 billion (31 December 2013 est.)
Exchange rates
the US dollar is used
Energy
Electricity access
electrification - total population: 100% (2018)
Communications
Telephones - fixed lines
total subscriptions: 8,808
subscriptions per 100 inhabitants: 40.78 (2019 est.)
Telephones - mobile cellular
total subscriptions: 29,033
subscriptions per 100 inhabitants: 134.41 (2019 est.)
Telecommunication systems
general assessment: well-developed mobile sector, recently boosted by satellite network capacity upgrades; 3G services available with satellite; lack of telecom regulations; newest and most powerful commercial satellite, Kacific-1 satellite, launched in 2019 to improve telecommunications in the Asia Pacific region (2020)
domestic: fixed-line 41 per 100 and mobile-cellular services 134 per 100 persons (2019)
international: country code - 680; landing point for the SEA-US submarine cable linking Palau, Philippines, Micronesia, Indonesia, Hawaii (US), Guam (US) and California (US); satellite earth station - 1 Intelsat (Pacific Ocean) (2019)
note: the COVID-19 outbreak is negatively impacting telecommunications production and supply chains globally; consumer spending on telecom devices and services has also slowed due to the pandemic's effect on economies worldwide; overall progress towards improvements in all facets of the telecom industry - mobile, fixed-line, broadband, submarine cable and satellite - has moderated
Broadcast media
no broadcast TV stations; a cable TV network covers the major islands and provides access to 4 local cable stations, rebroadcasts (on a delayed basis) of a number of US stations, as well as access to a number of real-time satellite TV channels; about a half dozen radio stations (1 government-owned) (2019)
Internet users
total: 7,650
percent of population: 36% (July 2016 est.)
Transportation
National air transport system
number of registered air carriers: 1 (2020)
inventory of registered aircraft operated by air carriers: 1
Airports - with paved runways
total: 1 (2019)
1,524 to 2,437 m: 1
Airports - with unpaved runways
total: 2 (2013)
1,524 to 2,437 m: 2 (2013)
Roadways
total: 125 km (2018)
paved: 89 km (2018)
unpaved: 36 km (2018)
Merchant marine
total: 203
by type: bulk carrier 9, container ship 11, general cargo 88, oil tanker 31, other 64 (2019)
Ports and terminals
major seaport(s): Koror
Military and Security
Military and security forces
no regular military forces; the Ministry of Justice includes divisions/bureaus for public security, police functions, and maritime law enforcement. (2019)
Military equipment inventories and acquisitions
since 2018, Australia and Japan have provided patrol boats to the Palau's Division of Marine Law Enforcement (2020)
Military - note
Under a 1994 Compact of Free Association between Palau and the US, the US until 2044 is responsible for the defense of Palaus and the US military is granted access to the islands, but it has not stationed any military forces there. (2020)
Transnational Issues
Disputes - international
maritime delineation negotiations continue with Philippines, Indonesia