The economy of San Lorenzo de Descardazar, like much of the Balearic Islands, is primarily driven by tourism. The city attracts visitors year-round, thanks to its natural beauty, historical landmarks, and cultural events. In addition to tourism, the agricultural sector remains important, with the surrounding countryside producing olive oil, almonds, and wine, much of which is sold at local markets or exported.
Craftsmanship is another key industry, with many local artisans producing ceramics, textiles, and leather goods. These unique products are popular among tourists and provide a valuable source of income for the city. In recent years, there has been a growing focus on sustainable tourism and eco-friendly practices, with the city promoting local products and responsible tourism initiatives.