Algete’s economy has traditionally been based on agriculture and livestock, with its fertile lands yielding various crops and supporting dairy farms. However, in recent decades, the town has seen significant growth in the service sector, particularly tourism and retail, thanks to its proximity to Madrid. Many residents now commute to Madrid for work, contributing to a diverse local economy that blends rural and urban industries.
The town is also home to small manufacturing businesses, particularly those focusing on textiles and construction materials. Additionally, Algete has a growing number of local artisan shops where visitors can purchase handmade crafts, pottery, and other unique souvenirs.
Agriculture remains an important part of the local economy, with Algete known for producing high-quality local products, including olive oil, wine, and fresh produce. These products are often featured in local markets and are a point of pride for the community.