Nujiang's economy is primarily agricultural, with corn, rice, and buckwheat as staple crops. The mountainous terrain limits arable land to river valley terraces. Livestock raising, particularly goats and pigs, is important for local livelihoods.
Historically, Nujiang was one of China's poorest prefectures. Poverty alleviation programs have dramatically improved living standards, with new housing, roads, and access to education and healthcare transforming previously isolated communities.
Hydropower development on the Nu River has been controversial but has brought infrastructure investment. Some sections of the river remain free-flowing due to environmental concerns.
Tourism is seen as the most sustainable economic path. The dramatic Nujiang Grand Canyon, unique ethnic cultures, and biodiversity of Gaoligong Mountain are drawing increasing numbers of domestic and international tourists. Ecotourism and community-based tourism initiatives are being developed.
Nujiang's GDP reached approximately 25 billion yuan, the lowest among Yunnan's prefectures, but growth rates have been strong in recent years driven by infrastructure investment and tourism development.