Economy of the area and the town is largely determined by the vicinity of Austria and the presence of western companies. The significance of the services sector, elderly care and the educational institutions are of outstanding importance also from an employment perspective. The number of registered enterprises grows year by year.

The key industrial players in Kőszeg are the cable harness manufacturing plant of Kromberg & Schubert and the beam and brick factory of Hungária Wienerberger that uses local raw materials. The only working felt factory left in Hungary, the last plant of the textile industry that was dominant for centuries, is owned by Multifelt Factory KFT. Craftsmanship and construction traditions of the town are also significant. Cooperation of local craftsmen is coordinated by the historic Craftsmen’s Association of Entrepreneurs of Kőszeg and its Environs.


Key players of the bakery industry of the area are Soproni Zoltán és Társai KFT and the Kőszeg plant of Ferrosüt KFT. Pomology of the area is developing at a fast pace, especially wine-growing in Kőszeg and Kőszeg-hegyalja, Lukácsháza and Csepreg regions, which all belong to the Sopron Wine Region. Soil characteristics are favourable for plant and fruit cultivation on arable lands. Szombathelyi Erdészeti ZRT (Szombathely Forestry Corporation) is the most important manager of the extensive wooded areas of the Kőszeg Mountains.

Other major employers of the immediate vicinity are Uniriv KFT in Csepreg (metal hardware), Schott Hungary KFT (ampoules) and Suxess Logistic Hungary KFT in Lukácsháza (transportation and logistics).