Country Profile: Palau

Palau is an island nation located in Oceania, southeast of the Philippines, renowned for its tropical climate and rich marine biodiversity. The population is approximately 21,864, predominantly residing in the southern part of Babelthuap Island. The economy relies heavily on tourism, subsistence agriculture, and fishing, with significant support from US aid. Governed as a presidential republic in free association with the United States, Palau emphasizes environmental protection and sustainable development.

Geography

Palau consists of over 300 islands, forming an archipelago in the western Pacific Ocean. The terrain varies from high mountainous regions to low coral islands, typically surrounded by large barrier reefs. The country enjoys a tropical climate with a wet season lasting from May to November.

Total Area: 459 sq km
Coastline: 1,519 km
Highest Point: Mount Ngerchelchuus, 242 m
Climate: Tropical, hot, and humid
Natural Hazards: Typhoons (June to December)

People and Society

Palau has a diverse population of about 21,864, with a mix of ethnicities, primarily Palauan, Carolinian, and Asian influences. The official languages include Palauan and English, and the predominant religions are Roman Catholicism and Protestantism. The country has a high literacy rate and a significant urban population.

Population Growth Rate: 0.38% (2024 est.)
Life Expectancy: 75.2 years (2024 est.)
Median Age: 35.3 years (2024 est.)
Urbanization Rate: 82.4% (2023 est.)
Major Urban Area: Ngerulmud (capital) with a population of 277 (2018)

Economy

Palau maintains a high-income economy characterized by its reliance on tourism, agriculture, and fisheries. The effects of the COVID-19 pandemic are receding, with a rebounding tourism sector. The country also experiences low unemployment rates while depending on financial assistance from the United States.

Real GDP (PPP): $280.025 million (2023 est.)
GDP Growth Rate: 1.9% (2023 est.)
GDP per Capita: $15,800 (2023 est.)
Main Industries: Tourism, fishing, subsistence agriculture
Agricultural Products: Coconuts, fish, and various fruits and vegetables

Government

Palau operates as a presidential republic with a system of governance established through a constitution ratified in 1981. The country conducts elections every four years, and its government type allows for a balance of powers among the executive, legislative, and judicial branches.

Capital: Ngerulmud
Independence Date: October 1, 1994
Executive: President Surangel WHIPPS, Jr. (since January 21, 2021)
Legislative Structure: Bicameral National Congress
Suffrage: Universal at age 18

Military and Security

Palau does not maintain a regular military force; defense responsibilities are fulfilled by the United States under a Compact of Free Association. The Bureau of Public Safety manages law enforcement and maritime security functions.

Defense Agreement: US responsible for defense; Palau citizens may serve in the US armed forces
Maritime Security: Shiprider agreements with the US Coast Guard enable local law enforcement cooperation

Energy

Palau has achieved complete electrification, ensuring that all residents have access to electricity, regardless of their location on the islands.

Electricity Access: 100% (2022 est.)
Urban Electrification: 99.9%
Rural Electrification: 100%

Environment

The nation faces environmental challenges such as waste disposal, rising sea levels, and threats to marine ecosystems. Palau is a signatory to multiple international environmental agreements focused on climate change and biodiversity.

Forest Cover: 90.4% of land area (2022 est.)
Major Environmental Issues: Coral bleaching, illegal fishing, and overfishing
Key Initiatives: Shark sanctuary established in 2011; ban on coral reef-toxic sunscreens initiated in 2020

Transportation

Palau's transportation infrastructure includes a few airports and a small merchant marine fleet for maritime trade.

Airports: 3 (2025)
Merchant Marine: 427 vessels (2023)
Key Port: Malakal Harbor

Communications

The communication landscape in Palau includes both fixed and mobile telephone services, but does not have local broadcast television stations.

Total Mobile Subscriptions: 24,000 (2023 est.)
Internet Users: 27% of the population (2004 est.)

Key Metrics

Metric	Value	Note
Population	21,864 (2024 est.)
Area	459 sq km
GDP (PPP)	$280.025 million (2023 est.)
Life Expectancy	75.2 years (2024 est.)
Literacy Rate	97% (2015 est.)
Urban Population	82.4% (2023)
Electricity Access	100% (2022 est.)
Birth Rate	11.6 births/1,000 population (2024 est.)
Median Age	35.3 years (2024 est.)
Unemployment Rate	Low (exact rate not specified)