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Palau FY25 Economic Review

The Palau Economic Review 2025 provides a comprehensive analysis of Palau’s economic performance, policy environment, and future outlook. The report highlights a strong post-pandemic recovery, with GDP growth reaching 11.9% in FY2024 and about 7.3% in FY2025 as tourism, construction, and government spending rebound. It examines ongoing challenges such as a still-recovering tourism sector, rising reliance on foreign labor, and the lingering effects of recent inflation despite prices stabilizing. The report also explores the fiscal impact of recent tax reforms, including the Palau Goods and Services Tax (PGST), which has strengthened government revenues and supported a return to budget surpluses, while noting that public debt remains elevated. In addition, it addresses key structural issues such as state-owned enterprise performance, financial sector constraints, and risks to social security and pension systems. Download the full review to explore the detailed analysis and recommendations.

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https://pitiviti.org/storage/dm/2026/05/palau-review-2025-20260501234627571.pdf

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Palau FY25 Economic Review

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The Palau Economic Review 2025 provides a comprehensive analysis of Palau’s economic performance, policy environment, and future outlook. The report highlights a strong post-pandemic recovery, with GDP growth reaching 11.9% in FY2024 and about 7.3% in FY2025 as tourism, construction, and government spending rebound. It examines ongoing challenges such as a still-recovering tourism sector, rising reliance on foreign labor, and the lingering effects of recent inflation despite prices stabilizing. The report also explores the fiscal impact of recent tax reforms, including the Palau Goods and Services Tax (PGST), which has strengthened government revenues and supported a return to budget surpluses, while noting that public debt remains elevated. In addition, it addresses key structural issues such as state-owned enterprise performance, financial sector constraints, and risks to social security and pension systems. Download the full review to explore the detailed analysis and recommendations.

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https://pubs.pitiviti.org/palau-fy25

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