The Union's industrial and economic capacity soared during the war as the North continued its rapid industrialization to suppress the rebellion. In the South, a smaller industrial base, fewer rail lines, and an agricultural economy based upon slave labor made mobilization of resources more difficult.
The Civil War affected the North's economy in many ways. ... Most of the battles took place in the South so the North did not have to rebuild and repair huge amounts of area. This saved them a lot of money and they did not lose anything like the South losing their currency and slaves so the North prospered.
