MILLI RE 2023 ANNUAL REPORT

CHAIRPERSON’S MESSAGE Anticipations for a “soft landing” in global economy are getting stronger. The policies pursued to combat inflation and their implications made the main agenda items of global economy in 2023. In the reporting period, tight monetary policies implemented in the majority of developed and developing economies repressed economic activity as well. Global economic growth that was registered as 3.5% in 2022 is estimated to have lost momentum and slid down to 3.1% in 2023. While decelerated economic activity became marked in the Euro Zone in the reporting period, the US economy displayed a relatively more positive performance. The loss of pace in economic activity is expected to persist in 2024 as the lagged effects of tight monetary policy implementations persist across the globe. On the other hand, it is envisaged that the said deceleration will take place in accordance with the “soft landing” scenario, and not evolve into a global recession. In the January update of its World Economic Outlook, the IMF projects 2024 global growth at the order of 3.1%. The highlights of risk elements with respect to global outlook in 2024 include the potential negative impact upon inflation that the geopolitical risks originating in Ukraine and the Middle East might create on energy by way of energy and freight prices, high borrowing costs, and the potentially lower-than-projected growth performance to be attained by the Chinese economy. Furthermore, the expectations regarding the timing of rate cuts in developed countries in 2024 will also be telling upon the course of global risk appetite. 2023 has been a tough year for Türkiye. In 2023, the performance of the Turkish economy has been determined by the modified economy policy and the earthquake disaster. The economic burden that the horrendous earthquake disaster of February that destroyed a broad geography, as well as the social injury it has inflicted, made 2023 a tough year for our country in every respect. MİLLİ RE PRESSES AHEAD SURE-FOOTEDLY, INCREASING ITS CONTRIBUTION TO THE NATIONAL ECONOMY FULFILLING ITS RESPONSIBILITY IMPOSED BY ITS LEADERSHIP POSITION. 10 MİLLİ RE