Republic of Palau: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau

Author: International Monetary Fund. Asia and Pacific Dept

Volume/Issue: Volume 2026 Issue 022

Publication date: January 2026

ISBN: 9798229037600

$20.00

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Topics covered in this book

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Finance , Economics- Macroeconomics , Public Finance , Industries - Hospitality Travel and Tourism , Tourism , Public sector , Financial sector stability

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Summary

Recovery is underway with improving fiscal balance, declining debt, and well-contained inflation, though FY2024 real GDP remained below pre-pandemic levels and the debt level is still high. The 2023 Compact Review Agreement (CRA-23) and a successful tax reform have provided Palau with additional fiscal space to navigate long-term challenges, including adverse demographic shifts and climate vulnerability.