The impact of the Civil War on the Southern economy was predominantly one of economic devastation and reliance on agriculture.

The conflict destroyed infrastructure, including railroads and farms, severely disrupting production and trade. The South's economy, heavily dependent on cotton and slave labor, was left in ruins, with many plantations devastated. Additionally, the abolition of slavery eliminated the labor force that had supported the agricultural economy, leading to widespread poverty. The post-war period saw a struggle to rebuild, ultimately delaying industrialization and hindering long-term economic recovery in the South.