Chungyang Street and a section of Chungching Li in Makung are the areas where the first stores and markets emerged on Penghu.

Fishing, agriculture, and mining are the major industries in the Penghu Archipelago, of which fishing is the most important. It is concentrated off the coast of the main island of Penghu, with grouper, emperor, squid, lobster, red frog crab, and other fish, and mussel such as Japanese abalone and top shell being the best-known products. Agricultural products consist mainly of peanuts and melons. Sponge gourd, chia-pao melon, and cantaloupes are the three major melons produced in Penghu. The islands are also known for their peanut products-peanut brittle, peanut-in-shell, and five-favored peanut are three common processed peanut products. Agate (veined stone) is the principal mineral product Penghu and Italy are the world's two largest agate producing areas, and Penghu's agate has been recognized worldwide as being the best because of its beautiful colors and fine quality.

Following the development of the Penghu Scenic Area, the tourism industry has grown rapidly, thereby promoting and spurring on the overall economy of Penghu. All sectors of industry, business, services, and manufacturing have seen steady growth due to the changes of the economic environment and the strengthening of the market mechanism. As a result, positive interactions and changes were made possible for the industrial infrastructure of the entire Penghu region, and the severe problem of population outflow was also greatly improved.