15 Fastest Declining Economies in the World in 2024

3. Palau

Average GDP Growth: -6.38%

High inflation in Palau has increased from 5% to 25% in just two years that has eroded purchasing power and also ridiculously increased the cost of living. The unemployment rate has also skyrocketed, now at 18% compared to 7% five years ago. Additionally, the national debt has ballooned to 120% of GDP, up from 80% three years ago, which has strained public finances and reduced the government’s ability to invest in economic growth. All of these factors explain the economic failure of the country.