The economy of Guadarrama is largely driven by tourism, thanks to its location near the Sierra de Guadarrama National Park and its appeal as a weekend getaway for residents of Madrid. The hospitality sector, including hotels, restaurants, and outdoor activities, plays a significant role in the local economy. Ecotourism, in particular, has been on the rise, with visitors drawn to the area’s hiking trails, nature reserves, and opportunities for outdoor sports.
In addition to tourism, Guadarrama has a strong agricultural tradition. The surrounding countryside is known for producing high-quality livestock, particularly cattle and sheep, which form the basis of many local dishes. Local farms also produce fruits, vegetables, and dairy products, which are sold at markets and used in the town’s restaurants. The town also has small-scale artisanal industries, such as handmade crafts and local products like honey and cheese.
While Guadarrama is not heavily industrialized, its economy benefits from its proximity to Madrid, allowing for the easy transport of goods and services to and from the capital.