Economic activity is based on the primary sector, which includes agriculture, predominantly the production of sugar cane, banana, horticulture and floriculture. Another highlight is the traditional trade and hotels. In the municipality there is a company exporting plants.
This municipality has the Paul da Serra, which is distinguished for being the only plateau on the island of Madeira, and this at an altitude of 1,500 m. This site has unique natural features, due to its size and location, as nuclei of indigenous vegetation, wildlife species and migratory birds. In Paul da Serra there are wind turbines that produce electricity in a non-polluting manner.