This resulted in a boom in the real estate market. Lenders began to extend mortgages to millions who couldn’t qualify for traditional bank loans. Housing prices therefore peaked in early 2006 and began to decline in 2006 and 2007. Many of the subprime mortgages were affordable in the beginning but rates spiked in 2007. In the meltdown that occurred in the wake of this crisis, several banks in Wall Street had to declare bankruptcies and a global recession followed. It is considered one of the worst financial crises.
In the recent years, the world economy has continued showing signs of global recovery. The Eurozone grew by 0.6% in the three months to September 2017. This was above the expectations set by analysts. According to the data from the Eurostat, the 19 members part of the Eurozone, saw their growth accelerated by 0.6% in the three months to June 2017.