Agricultural has been one of the traditional economic base of Liliw and will continue to be a significant segment in the municipality's economic development. The total agricultural area is 4,241.505 hectares which is 74.66% of the total land area. Agriculture crops grown in the municipality are coconut, lanzones, palay, banana, vegetables like tomatoes, mustasa, pechay, labanos, ampalaya, beans, squash, and repolyo, and root crops like sweet potato and cassava.

The commercial sector with respect to retail merchandising has grown over the years and became one of the means of the populace. The Municipality of Liliw is known to be "Land of Footwear", where slippers can never go out of fashion. Due to the growing of footwear industry, it is now considered as the major means of livelihood for the Liliweños. Most of the shoes and slippers are displayed and sold in the "Trade Fair Center" located at the front area of the municipal building, making the area prominent as a tourist spot. The municipal is also known for its mouth-watering uraro pastries and other candies, where you can find in any sari-sari stores in town. Liliw is also noted for its "lambanog" of distillery.

As of 2008, there are 636 registered commercial establishments in the municipality classified as follows: retail merchandising, servicing firms, agricultural support facilities, recreational facilities, and financial institutions.