Main industries: agriculture, winemaking, fishing, crafts (including carpet), oil, light and chemical industries, machine building, electric power production.
Foreign trade turnover - 319 million dollars (1997).
Republican Budget (1999):
• Cost - 4,044,134 thousand
• Income - 3,608,498 thousand, including:
o income from taxes and fees - 425 485 thousand rubles
o revenue target budgetary funds - 358 513 thousand rubles
o transfer and financial assistance from the federal budget - 2,824,500 thousand
Alpine rivers of the region have considerable hydroelectric potential estimated to be 55 billion kW • h per year. In 2010 to develop the existing stations is about 5.1 billion kW • h particularly valuable peak electricity a year:
• Chirkeisk HPP 1000 MW
• Irganayskaya HPP - 400 MW
• Miatly HPP - 220 MW
• Chiryurtskie HPP total capacity of 125 MW
• Gergebilsky GES - 17,8 MW
• Gunibsky GES - 15 MW
• as well as several small hydropower
During the construction phase is Gotsatlinskaya HPP (100 MW and 310 million kW • h), there is a project Agvalinskoy HPP (220 MW and 680 million kW • h),
The largest industrial enterprise in the region - plant Dagdiesel producing except defense and civil products.
Handicrafts - chasing, carpet. Crops - wheat, corn, barley, rice, sunflower. Market gardening, horticulture and viticulture. Main branch of animal husbandry - sheep.
The seaport, the airport had international status. Established the regular airline with the countries of the east.
There are all conditions for tourism development.