KOROR (Palau Horizon) — Palau’s economy significantly grew by 3.3 percent in 2000, according to a government report.
The economic report in 2000 indicated a recovery from the 1997 Asian crisis which had severely affected Palau.
In 1999, Palau’s economy registered a 13.3 percent growth. The country managed to recover the following year.
The report noted that Palau met several developmental challenges, which were mostly on the “formulation of economic policies and regulatory environment.”
Further, the report noted a growth in private and foreign sector development which surpassed the progress of public sector employment.
Based on the data provided by the Social Security Administration, the report indicated an increase in the public sector between fiscal years 1998 and 2001.
The public sector employment recorded 305 positions while the combined increase for the private and foreign-controlled sector was 1,610 positions.
Nearly half of this progress had been recorded in the foreign-controlled construction industry which handled large infrastructure project.
The annual report also indicated growth in the government workers’ wages.
Gross wages in 1998 gradually increased from $66.8 million to $80.8 million in 2001, up by 21 percent.
Wages in the trade sector increased from $8.8 million in 1996 to $11.4 million in 2001.
The public sector accounted for approximately 26 percent of gross domestic products in 2000 which recorded an increase of about 3 percent from 1999.
The manufacturing industry accounted for only 1.5 percent of GDP.
There are two garment factories in Palau. The workforce of this sector is mainly comprised of Chinese.
The construction industry contributed 6.8 percent of the GDP.
The annual report was prepared to comply with Palau’s Compact of Free Association with the U.S.
