MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 9 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities In 2019 trade volume was suppressed across the world accompanied by weakening in the global economic growth. During the period while deterioration in production and demand indicators pushed down the growth, central banks tended towards expansionary monetary policies. Last year, as Fed cut interest rates thrice and European Central Bank (ECB) implemented a new support package in addition to interest rate reductions, the economic growth outlook showed differentiations in developed countries. While US statistics, announced in the last quarter of the year, painted a relatively promising picture of the country’s economy, Euro Zone presented a weak outlook. World-wide slowdown in the economic growth and contraction in the global demand led the IMF to revise its growth forecasts. According to The World Economic Outlook Report published by IMF in January 2020, global economy, which attained 3.6% annual growth rate between the years 2011 and 2018, is estimated to grow by 2.9% in 2019 and projected to reach 3.3% in 2020. Besides the fact that US economy exceeded the expectations set at the beginning of the year and gave positive signals in the last quarter of the year, conditions such as; Phase One of the trade deal being concluded as a result of the US-China negotiations, as well as the loose monetary policies which prevailed in the emerging countries following the steps of developed countries’ central banks, strengthened the positive expectations for the upcoming period. On the other hand, as a result of the fluctuations in the exchange rates, interest rates and inflation as well as the stagnation observed in the domestic economic activity, Turkish economy which had been showing a contraction trend in the last quarter of 2018, kept shrinking until mid-year 2019. Nonetheless, with the impact of downward movement in oil prices as well as the value of Turkish Lira navigating in competitive levels and domestic demand conditions remaining moderate, the Consumer Price Index declined in the second half of the year and registered as 11.8% by the end of the year. By the end of 2019, our company’s assets grew by 21.2% and reached TL 4,532 million. 21.2%