The economy of Guernica is driven by a mix of agriculture, light industry, and tourism. The fertile lands surrounding the city are ideal for farming, and agriculture remains an important part of the local economy. Guernica is particularly known for its production of high-quality products like peppers (Gernikako Piperrak) and cheese. In recent years, tourism has become an increasingly important industry, with visitors drawn by the city’s history, cultural significance, and natural beauty.
Craftsmanship is another local economic driver, with many traditional Basque crafts such as woodwork, ceramics, and textiles still thriving in the area. Guernica is also home to several small manufacturing businesses, which provide a range of goods for local and regional markets.
Tourism in Guernica is increasingly focused on cultural and eco-tourism, thanks to the growing awareness of its historical significance and the environmental importance of the surrounding Urdaibai Biosphere Reserve.