In the early 19th century, Norway faced a severe economic crisis following the Napoleonic Wars, which had left many merchants bankrupt. The country introduced its own currency, the Norwegian speciedaler, in 1816 to stabilize the economy, funded by a silver tax. Despite never ratifying the Treaty of Kiel, Norway, under pressure, paid debts to Sweden. The early decades were dominated by about 2,000 state officials, as Norway had no aristocracy after abolishing nobility in 1821. However, by the 1830s, farmers began asserting influence, gaining a parliamentary majority and shifting the tax burden from rural areas to cities. The 1838 Local Committees Act introduced elected municipal councils, marking an important step toward self-governance.
Cultural life during this period was characterized by romantic nationalism, celebrating Norway’s uniqueness. Industrialization began with the textile industry in the 1840s, followed by mechanical workshops. An economic crisis in 1848 led to the rise of labor unions, notably Marcus Thrane’s movement, which pushed for greater legal equality. Population growth, driven by improved nutrition, better hygiene, and reduced infant mortality, reached 1.7 million by 1865. This also spurred emigration to North America, particularly from the 1860s onward, with around 800,000 Norwegians emigrating by 1930.
Economic development was marked by infrastructure improvements, such as road construction, steamship services, the opening of the Trunk Line railway in 1854, and telegraph services. The booming shipping industry made Norway the third-largest merchant marine by 1880. With industrialization came steam-powered sawmills, herring exports, and the introduction of the Norwegian krone in 1875, alongside the adoption of the metric system.