Yangjiang's economy is built on three pillars: the hardware and knife industry, tourism, and agriculture/fisheries. The knife and scissors industry is the city's most famous sector, with over 1,500 enterprises producing everything from kitchen knives to surgical blades for global markets.
Tourism is the fastest-growing sector, driven by Hailing Island's popularity. The island attracts over 10 million visitors annually, supporting a thriving hospitality and service industry. Agriculture and fisheries remain important, with Yangjiang being a major producer of seafood, rice, fruits, and the famous Yangjiang douchi (fermented black beans). The city's GDP reached 160 billion yuan in 2025, with steady growth across all sectors.