A subsistence economy is an economy directed to basic subsistence (the provision of sufficient food, clothing and shelter to sustain life) rather than orientated to sustaining a market in essential and desirable assets.

"Subsistence" is understood as supporting oneself and family at a minimum level. Basic subsistence is the provision of food, clothing, shelter. A subsistence economy is an economy directed to one's subsistence rather than to the market. Often, the subsistence economy is moneyless and relies on natural resources to provide for basic needs through hunting, gathering, and agriculture. In a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization. In hunting and gathering societies, resources are often, if not typically underused.

The subsistence system is maintained through sharing, feasting, ritual observance and associated norms. Harvesting is an important indicator of social capital. Subsistence embodies cultural perspectives of relationships to places, people and animals.

In human history, before the first cities, all humans lived in a subsistence economy.^{[citation needed]} As urbanization, civilization, and division of labor spread, various societies moved to other economic systems at various times.^{[citation needed]} Some remain relatively unchanged, ranging from uncontacted peoples, to marginalized areas of developing countries, to some cultures that choose to retain a traditional economy.^{[citation needed]}