The most recent enterprises in Eyrarbakki have been a fish-processing plant, and an aluminum frying-pan plant. However, the main fish factory closed in the 1990s, and the frying-pan factory has closed as well. The nearby prison, Litla-Hraun, the largest in Iceland, is one of the town's main employers. In addition, there are a few small farms, with the traditional Icelandic horse breed. Tourism is another mainstay of the small economy
