How did the Civil War affect the economies of the North and of the South?

The American Civil War (1861–1865), caused enormous military and civilian casualties for both the the Union (North) and the Confederacy (South), with estimates as high as one million deaths brought about by combat, disease, and food shortages. The South, however, experienced greater economic losses than the North, both during the war and in its aftermath.
Prior to the Civil War, the northern states were mechanized and had already developed a great deal of industry and manufacturing: textile mills, leather processing, pig iron foundries, and firearms production. War created a demand for more of certain kinds of products and materials. Areas of agriculture in the Union states which did not rely on slave labor also did not suffer the economic devastation that the Civil War brought to the Confederacy.
The Union's act of capturing the Savannah Seaport and the major economic hub of Atlanta, Georgia, further paralyzed the economy of the South and reduced the Confederate ability to finance the war effort. Ultimately, with the Union victory and the abolition of slavery, the South lost the large unpaid work force which it depended on for cotton production. Thus, the economy of the region was deeply diminished.