In 1661, King Frederick III declared himself the absolute and hereditary monarch of Denmark and Norway, putting an end to the influence of the nobility. A new administrative system was introduced, with central governance in Copenhagen and Norway divided into counties led by district governors, further subdivided into bailiwicks. Approximately 1,600 officials were appointed throughout Norway, ensuring tighter control. Ulrik Fredrik Gyldenløve, the viceroy from 1664 to 1699, became a prominent figure during this time.
Norway’s population experienced significant growth, rising from 150,000 in 1500 to 900,000 by 1800. The era also saw a rise in self-owning farmers as crown lands were sold to finance Denmark’s wars, with crofts becoming common in Eastern Norway and Trøndelag. While taxes in Norway were relatively low, elementary education was introduced in 1736 to ensure people could meet the confirmation requirement for Lutheran instruction.
The economy was driven by mercantilism, with trade controlled by import restrictions and monopolies. The timber industry, aided by the introduction of water-driven saws in the early 16th century, grew as Norway’s abundant forests became a key export resource, particularly to England. However, a royal decree in 1688 closed many small sawmills to prevent deforestation, leaving large merchants in control of the trade. Mining became significant, particularly the silver mines in Kongsberg and copper mines in Røros, while fishing—especially cod—remained crucial. A shift towards salted fish required fishermen to purchase salt from merchants, linking the fishing industry more closely to trade networks.
Norwegian shipping expanded during periods of European neutrality, particularly between 1690 and 1710, and recovered after the Great Northern War. Bergen remained the largest city in Norway, with a population of 14,000 by the mid-18th century, far outstripping Christiania (Oslo) and Trondheim. Despite economic growth, much of Norway's wealth was transferred to Copenhagen, reflecting its subordination to Denmark during this period.