According to countryaah, Palau’s business is largely based on financial support from the US, Taiwan and Japan. Despite this, the country has major financial problems, mainly as a result of a lack of investment in infrastructure and industry. In 1991, a major investment project for the construction of the island of Babelthuap was secured; among other things, it was planned to move the country’s capital there. The project, which is being implemented in collaboration with Japanese investors, is believed to have a positive effect on the country’s economy.
About 80 percent of the country’s employed work in the service and service sector. In addition to the service industries, the industries dominate agriculture and fishing, mainly in the form of smaller self-catering units. More recently, the tourism industry has grown in importance and is now the most economically important sector. The country’s exports are mainly seafood, tuna and scrap metal.