English and Palauan official in all states except Sonsoral (Sonsorolese and English are official), Tobi (Tobi and English are official), and Angaur (Angaur, Japanese, and English are official)
The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population enjoys a per capita income of twice that of the Philippines and much of Micronesia. Long-run prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rising prosperity of leading East Asian countries.
Industry:
tourism, craft items (from shell, wood, pearls), construction, garment making
Ethnicgroups:
Palauan (Micronesian with Malayan and Melanesian admixtures) 70%, Asian (mainly Filipinos, followed by Chinese, Taiwanese, and Vietnamese) 28%, white 2% (2000 est.)
