Republic of Palau: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
Republic of Palau: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
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Volume/Issue:
Volume 2026
Issue 022
Publication date: January 2026
ISBN: 9798229037600
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Labor , Public Finance , Industries - Hospitality Travel and Tourism , Business and Financial , staff report , article IV consultation discussion , IMF technical assistance , exchange arrangement , fund relation , Fiscal risks , Tourism , Wages , Global , Pacific Islands
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.
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