Lishui's economy is relatively small compared to other Zhejiang cities but has developed steadily with a focus on eco-friendly and sustainable industries.
Tourism is the most dynamic sector, built on world-class attractions like the Yunhe Terraces, Xiandu, and the ancient villages. The city has positioned itself as "China's Photography Paradise," attracting both amateur and professional photographers. The tourism industry supports a growing network of boutique hotels, guesthouses, and restaurants.
Traditional crafts remain economically and culturally significant. Longquan celadon pottery is internationally renowned, with workshops and studios producing everything from traditional vases to contemporary art pieces. Longquan swords are another famous traditional product, considered among the finest swords in Chinese history.
Agriculture focuses on high-value specialty products: Longquan mushrooms, Jingning tea, Yunhe snow pears, and other mountain-grown delicacies are prized throughout China. The region's clean environment and traditional farming methods command premium prices.
Bamboo processing is a significant industry, taking advantage of the extensive mountain bamboo forests. Products range from construction materials to household items and handicrafts.