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Paxi is entirely self-financed despite its small size. Its residents deal a lot with agriculture, which is an important source of income, along with tourism and fishing. One of the main products of Paxi is olive oil. Its cultivation started in the Medieval times and was introduced by the Venetians. The olive oils are scattered from the olive trees and are elaborated in the only olive press that exists on the island and which is also working as an Olive Oil Museum.
Excellent wine is also produced on Paxi, of high quality and nice taste. Wine is largely served in the taverns of the island or you can buy a bottle as a souvenir, to drink it back home.