Current Account Balance: Palau

Analysis# Palau Current Account Balance Palau's current account balance stands at -14.2% of GDP in 2026, reflecting a significant structural deficit in its external accounts. The nation has struggled with persistent current account imbalances across the past 25 years, with deficits ranging from -12.2% (2010, the best recorded year) to -50.6% (2000, the worst). Since 2000, the current account balance has improved by 71.9 percentage points, though it remains deeply negative. The period from 2022 to 2024 marked a dramatic turning point. The deficit peaked at -49.2% in 2022, then contracted sharply to -22.2% by 2024, the steepest single-year improvement in the dataset. This recovery has continued, with projections showing further stabilization toward -14.2% by 2026. While Palau's current account deficit remains among the world's largest relative to GDP, the recent trajectory suggests meaningful adjustment toward sustainability.