The area in which Cochabamba is situated is commonly referred to as the granary of Bolivia. Its climate is milder than that of the Altiplano region to the west and thus permits an extensive agriculture, including grains, potatoes, and coffee in the highlands and sugarcane, cocoa beans, tobacco, and fruit in the Chapare tropical lowlands, an area that had been one of the country's main coca-leaf-producing regions.
Cochabamba is also the industrial pole of Bolivia, producing cars, cleaning products, cosmetics, chemicals, and other items like cement.
The economy of Cochabamba is characterized by produce goods and services.
The airline Boliviana de Aviaci�n has its headquarters in Cochabamba. The defunct airline Lloyd A�reo Boliviano (LAB Airlines) had its management offices on the grounds of Jorge Wilstermann Airport in Cochabamba. In Cochabamba the consttuctions site has being rapidly increasing in the last couple of year with more than 750 construction sites per year.
Cochabamba is also one of the main hubs for cocaine dealers in South America. In June 2012 the Colombian newspaper El Tiempo had access to intelligent reports that showed that cocaine cartels were behind condominiuns and real estate as well as industries such as meat
