The local economy stagnated under the Soviet occupation, which forcibly collectivized the farms in the area; it became an economic backwater.
Since Lithuania's independence in 1990, the town has made a recovery - it has much to offer by way of history and art. Kretinga hosts folk music festivals, theatricals, the Kretinga Festival, celebrations on Midsummer Night's Eve (Joninės) and Mardi Gras (Užgavėnės), and a Manorial Feast. The manor is now a museum housing artistic and archeological collections and a restaurant in the adjacent greenhouse, called "The Winter Garden". A Cambrian geothermal reservoir underlies the area, and the Vydmantai power plant exploiting this resource is being built nearby
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