The beginning of the twenty-first century looked promising for the Spanish economy. Economic growth in the new millennium's early years was spectacular, driven largely by the property bubble. During those years, it seemed everyone was building or buying a house. Construction became the engine of the Spanish economy, and employment grew at dizzying rates.
Cranes rose across the country, and house prices climbed and climbed uncontrollably. Banks were more than willing to grant mortgages to practically anyone applying, and private debt reached record levels. The party seemed endless, but like every party, this one ended too. In 2008, the property bubble burst, dragging the entire Spanish economy into what would be its worst economic crisis since the Civil War.
The 2008 crisis struck Spain with a ferocity few had anticipated. Unemployment soared, reaching levels close to 25 percent at its peak, and thousands of families found themselves unable to pay their mortgages, leading to a wave of evictions. The financial sector, which had financed the property bubble, also collapsed, forcing the government to rescue several savings banks and accept a financial bailout from the ORGANIZATION-004.
The Ibex 35, the Spanish stock market's benchmark index, perfectly reflected those years' economic roller coaster. Investors who had benefited from the property boom saw their shares plummet, and volatility became the norm in financial markets. Yet while the real economy staggered, El Corte Inglés kept cashing in on its sales and promotions, becoming a symbol of large corporations' ability to withstand crises.
Economic recovery was slow and painful. Although the Spanish economy has grown since then, the effects of the 2008 crisis remain palpable. Insecure employment, rising inequality, and public debt are problems that still persist. Employment has grown again, but many new jobs are temporary and poorly paid. Access to housing remains a problem, especially for young people watching rents skyrocket, particularly in major cities.