MILLIRE 2021 ANNUAL REPORT

ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RESEARCH & DEVELOPMENT ACTIVITIES 10 MİLLİ RE ANNUAL REPORT 2021 CHAIRPERSON’S MESSAGE Global economy started recuperating. Being the second year the world under pandemic conditions, 2021 has seen signs of recuperation in global economy get stronger. Positive developments achieved in vaccination rates throughout the year accelerated the normalization process; however, new variants caused interruptions in recovery. The International Monetary Fund (IMF) estimates that the world economy, after contracting in 2020, closed 2021 with a 5.9% growth rate, and the increase in the world trade volume has been around 9.3%. Shrinkage and imbalances arose on the supply front due to pandemic induced production interruptions and investment postponements, and quickly revived global demand during normalization met with inadequate supply brought along supply issues. Raw material crisis produced record rises in commodity prices, which were accompanied by energy prices. Hence, inflationary trends entered the global economic agenda once again. The last quarter of the year marked a new period when major central banks started tightening their supportive policies that had been ongoing since the onset of the pandemic in keeping with the aggravated concerns regarding inflation. As the Fed started tapering its asset purchases, the Bank of England implemented a rate hike for the first time in three years in December, and has thus been the first major central bank across the world to increase the rates since the pandemic broke out. The worldwide monetary tightening tendency is anticipated to continue in 2022. The Turkish economy sustained its growth. Having remained on growth track once again in 2021, the Turkish economy outperformed the forecasts with an annual growth rate of 11%. The increased demand that was driven by global recovery and the depreciated Turkish lira in 2021 resulted in new records in exports, and with the added impact of the rises in tourism and transportation revenues, the current account balance gained an