The economy of the state is based mainly on the commercial sector, the iron and steel industry, and the agricultural and fishing activities. The local Gross Domestic Product is conformed by the Services sector with 42% and which includes social, community, hotel and commerce services; by financial and real estate services with 15%; by manufacturing industry, basic metal industry in particular, with 14%; and by agriculture, livestock and fishing activities with 11%.

37% of the economically active population in the state take part in the agricultural, cattle and fishing industries. The main products cultivated in the state and which make Michoacan the national leader include avocado, blackberry, guava and strawberry. Other products, among the more than 150 grown on the state soil are wheat, green sorghum, sour lemon, spicy tomato and onions. It is worth mentioning that 43% of the land is dedicated to livestock, 27% is occupied by forests planted for timber, and 24% for agricultural use. Even so, the state suffers serious problems regarding over-pasturage, shortage of food supplies and erosion taking place on the grazing lands, not to mention the many wooded areas that lie now deforested and rendered useless.

The fishing sector occupies the first place in the nation regarding the supply of a small lake fish called the charal, and is also strong in the fishing of other species such as sea-bream and carp.

Regarding infrastructure, Michoacan enjoys an efficient road network that extends across 5,000 kilometers and which allows the state to rapidly and easily communicate with the central and western parts of the country. Also, the state railway network allows the Michoacan products to conveniently reach international markets.

Ciudad Lazaro Cardenas and Uruapan are cities in the state with airports serving domestic itineraries, while the capital Morelia has an international terminal that serves the main routes to major cities in the United States.