Its geography is mountainous: the Andes range ends there, and the Coastal Range begins. It is split by two mountainous systems, the Sierra de Aroa on the North and the Sierra de Nirgua. In between lies the agricultural land drained by the Yaracuy river. Most cities and towns are in this valley, including its capital San Felipe.
The economy of Yaracuy is mostly agricultural (sugar cane, corn, cattle raising). Some manufacturing can be found in Yaritagua area and Chivacoa, usually in agribusiness.
In recent years, Yaracuy had experienced some growth and social development under governor Eduardo Lapi (1995 - 2004). In 2004, thanks to the Chavez landslide, Lapi was narrowly unseated by Carlos E. Giménez, supported by Chavez political allies in the area. Since then, the economy has been in some turmoil as a considerable amount of land invasions by poor farmers in search of lands have created havoc within the agricultural system. In particular, the sugar cane production has plummeted. Carlos Giménez was followed as governor by Julio León in 2008, after he was removed from power due to allegations of corruption.