Palau
Top Sights & Landmarks
Background
Humans arrived in the Palauan archipelago from Southeast Asia around 1000 B.C. and developed a complex, highly organized matrilineal society where high-ranking women picked the chiefs. The islands were the westernmost part of the widely scattered Pacific islands north of New Guinea that Spanish explorers named the Caroline Islands in the 17th century. The 18th and 19th centuries saw occasional visits of whalers and traders as Spain gained some influence in the islands and administered it from the Philippines. Spain sold Palau to Germany in 1899 after losing the Philippines in the Spanish-American War. Japan seized Palau in 1914, was granted a League of Nations mandate to administer the islands in 1920, and made Koror the capital of its South Seas Mandate in 1922. By the outbreak of World War II, there were four times as many Japanese living in Koror as Palauans. In 1944, the US invasion of the island of Peleliu was one of the bloodiest island fights of the Pacific War. After the war, Palau became part of the US-administered Trust Territory of the Pacific Islands. Palau voted against joining the Federated States of Micronesia in 1978 and adopted its own constitution in 1981, which stated that Palau was a nuclear-free country. In 1982, Palau signed a Compact of Free Association (COFA) with the US, which granted Palau financial assistance and access to many US domestic programs in exchange for exclusive US military access and defense responsibilities. However, many Palauans saw the COFA as incompatible with the Palauan Constitution because of the US military’s nuclear arsenal, and seven referenda failed to achieve ratification. Following a constitutional amendment and eighth referendum in 1993, the COFA was ratified and entered into force in 1994 when the islands gained their independence. Its funding was renewed in 2010. Palau has been on the frontlines of combatting climate change and protecting marine resources. In 2011, Palau banned commercial shark fishing and created the world’s first shark sanctuary. In 2017, Palau began stamping the Palau Pledge into passports, reminding visitors to act in ecologically and culturally responsible ways. In 2020, Palau banned coral reef-toxic sunscreens and expanded its fishing prohibition to include 80% of its exclusive economic zone.
Location
Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
Area
Elevation
Detailed Geography Information
Coastline
1,519 km
Geography - note
westernmost archipelago in the Caroline chain, consists of six island groups totaling more than 300 islands; includes world-famous Rock Islands
Irrigated land
0 sq km (2022)
Land boundaries
total: 0 km
Maritime claims
territorial sea: 12 nm contiguous zone: 24 nm exclusive economic zone: 200 nm continental shelf: 200 nm
Natural hazards
typhoons (June to December)
Natural resources
Terrain
varying topography from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs
Population & Growth
Age Distribution
Demographic Longevity
Vital Dynamics
Detailed People & Society Information
Currently married women (ages 15-49)
48.3% (2020 est.)
Dependency ratios
total dependency ratio: 41.6 (2025 est.) youth dependency ratio: 24.9 (2025 est.) elderly dependency ratio: 16.7 (2025 est.) potential support ratio: 6 (2025 est.)
Education expenditure
3.5% of GDP (2023 est.) 9.8% national budget (2023 est.)
Ethnic groups
Gross reproduction rate
0.83 (2025 est.)
Health expenditure
16.4% of GDP (2021) 9.5% of national budget (2022 est.)
Infant mortality rate
total: 10.6 deaths/1,000 live births (2025 est.) male: 12.7 deaths/1,000 live births female: 8.8 deaths/1,000 live births
Languages
Literacy
total population: 100% (2020 est.) male: 100% (2020 est.) female: 100% (2020 est.)
Major urban areas - population
277 NGERULMUD (capital) (2018)
Maternal mortality ratio
89 deaths/100,000 live births (2023 est.)
Nationality
noun: Palauan(s) adjective: Palauan
Obesity - adult prevalence rate
55.3% (2016)
Physician density
1.81 physicians/1,000 population (2023)
Population distribution
most of the population is located on the southern end of the main island of Babelthuap
Refugees and internally displaced persons
Religions
School life expectancy (primary to tertiary education)
total: 15 years (2023 est.) male: 14 years (2023 est.) female: 16 years (2023 est.)
Sex ratio
at birth: 1.06 male(s)/female 0-14 years: 1.07 male(s)/female 15-64 years: 1.25 male(s)/female 65 years and over: 0.33 male(s)/female total population: 1.06 male(s)/female (2024 est.)
Tobacco use
total: 16.3% (2025 est.) male: 25.2% (2025 est.) female: 6.8% (2025 est.)
Climate & Issues
tropical; hot and humid; wet season May to November
Land Cover
Air & Carbon Emissions
Detailed Environmental Information
International environmental agreements
Urbanization
urban population: 82.4% of total population (2023) rate of urbanization: 1.59% annual rate of change (2020-25 est.)
Waste and recycling
municipal solid waste generated annually: 9,400 tons (2024 est.)
Capital & State Profile
Executive Branch
Legislative Branch
National Identity & Symbols
light blue with a large yellow disk to the left side
Detailed Government Information
Administrative divisions
16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol
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
Constitution
history: ratified 9 July 1980, effective 1 January 1981 amendment process: 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
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"
International law organization participation
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
International organization participation
Judicial branch
highest court(s): 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
Legal system
mixed system of civil, common, and customary law
National heritage
total World Heritage Sites: 1 (mixed) selected World Heritage Site locales: Rock Islands Southern Lagoon
Political parties
although not expressly forbidden by law, Palau does not have political parties or coalitions
Suffrage
18 years of age; universal
Economic Overview
high-income Pacific island economy; environmentally fragile; subsistence agriculture and fishing industries; US aid reliance; rebounding post-pandemic tourism industry and services sector; very high living standard and low unemployment
Size & Performance
GDP Sector Breakdown
Trade Balance
Budget Balance
Export Profile
Top Export Partners
Major Export Commodities
Detailed Economic Data
Agricultural products
Current account balance
-$135.428 million (2022 est.) -$115.739 million (2021 est.) -$115.61 million (2020 est.) note: balance of payments - net trade and primary/secondary income in current dollars
Exchange rates
the US dollar is used
GDP - composition, by end use
Industrial production growth rate
-19.5% (2023 est.) note: annual % change in industrial value added based on constant local currency
Industries
Inflation rate (consumer prices)
2.2% (2024 est.) 12.8% (2023 est.) 12.4% (2022 est.) note: annual % change based on consumer prices
Public debt
85.2% of GDP (2019 est.) note: central government debt as a % of GDP
Remittances
0.7% of GDP (2023 est.) 0.8% of GDP (2022 est.) 0.8% of GDP (2021 est.) note: personal transfers and compensation between resident and non-resident individuals/households/entities
Taxes and other revenues
18.1% (of GDP) (2020 est.) note: central government tax revenue as a % of GDP
Grid Infrastructure
Digital Access
Active internet users as a percentage of the total population.
Fixed Broadband
Mobile Cellular
Broadcast Media
Aviation
Ports & Harbors
Merchant Marine
Service & Defense Details
no regular military forces; the Bureau of Public Safety (Ministry of Justice) has divisions for police functions and maritime security (2025)
under the Compact of Free Association between Palau and the US, the US is responsible for the defense of Palau, and the US military is granted access to the islands; the COFA also allows citizens of Palau to serve in the US armed forces Palau has a "shiprider" agreement with the US, which allows local maritime law enforcement officers to embark on US Coast Guard (USCG) and US Navy (USN) vessels, including to board and search vessels suspected of violating laws or regulations within Palau's designated exclusive economic zone (EEZ) or on the high seas; "shiprider" agreements also enable USCG personnel and USN vessels with embarked USCG law enforcement personnel to work with host nations to protect critical regional resources (2025)