Historically, Almagro’s economy was driven by agriculture, particularly olive cultivation, wine production, and sheep farming. Today, these industries continue to play an essential role in the town’s economy, but tourism has emerged as a significant driver of economic activity. The town’s status as a cultural and historical destination attracts visitors year-round, particularly during its theater festival.
Almagro is also known for its high-quality handicrafts, especially lace making. The town is famous for its “encaje de bolillos” (bobbin lace), a craft that has been practiced for centuries and continues to thrive today. Local artisans produce intricate lace products that are sought after throughout Spain and beyond.
The hospitality sector, including hotels, restaurants, and event venues, has also flourished thanks to the town’s growing popularity as a tourist destination. Additionally, local wineries and olive oil producers contribute to both the local economy and the town’s reputation for high-quality artisanal products.