Kraśnik's economy is largely based on industrial production and processing. Also significant are metal production, printing and farming sectors, as well as services and retail. Among the city's largest employers are Fabryka Łożysk Tocznych S. A. and Tsubaki Hoover Polska. Kraśnik is also home to a number of construction companies, transportation firms and others. Of note is also a chain of local brickyards, which have been a staple of local economy for years. The brickyards produce traditional, hand-formed red bricks using local resources of clay.
Farming industry flourishes in the rural areas around the city thanks to good quality soils and pollution-free, unspoiled environment. This is where some of Poland's best fruit and vegetables are grown, including raspberries, redcurrants and strawberries.
Kraśnik is the capital of Kraśnik county in the south-western part of Lublin voivodship. The city is located in Urzędów Hills of Lublin Highlands, on the edge of Western Roztocze region. The city of Kraśnik covers the area of 26.1 square kilometers and is almost 10 km in length.
The city has always been an important transportation hub. The routes from Kraków to Vilnius and from Silesia and the Świętokrzyskie Mountains to Kiev used to cross here. Today the city is at the intersection of two state routes: No. 19 from Kuźnica Białostocka to Lublin, Rzeszów and Barwinek (soon to become the S19 express route) and No. 74 connecting Sulejów, Kielce, Zamość and the Polish-Ukrainian border crossing at Zosin. A very important part of the city's transportation infrastructure is the voivodship route No. 833 which leads to the newly built bridge across the Vistula at Kamień.
Kraśnik is some 60 km away from Lublin Airport at Świdnik. The city also lies on the railroad route from Lublin to Rzeszów.
In the future the city of Kraśnik might become an important European transportation hub as it lies on the intersection of the planned trans-European routes. One of them will run from Northern to Southern Europe connecting St. Petersburg, the Baltic States, Poland, Slovakia, Hungary, Romania, Croatia, Macedonia and Greece. The other route will be running from Ukraine to Western Europe (Kiev, Poland, Czech Republic, Germany, France and Spain).