Yuxi has one of the highest per capita GDPs in Yunnan province, driven primarily by the tobacco industry. The Hongta Group, founded in 1956, remains one of China's most profitable state-owned enterprises, contributing the majority of Yuxi's tax revenue.
Tourism is the fastest-growing sector, centered on Fuxian Lake. The lake's clear waters draw visitors from Kunming and beyond for swimming, boating, cycling, and lakeside dining. The Ailao Mountain and Mopan Mountain nature reserves attract eco-tourists.
Phosphate mining is a significant industry—Yuxi has substantial phosphate rock deposits used in fertilizer production. The city also has a growing flower export industry, leveraging Yunnan's reputation as China's flower basket.
Agriculture remains important, with tobacco as the primary cash crop, supplemented by fruits (cherries, plums, apricots) and vegetables. The mild climate allows for year-round cultivation.