MILLI_RE_ANNUAL REPORT 2022

biggest contributor to euro-area inflation was the surge in energy prices. In China, measures associated with the government’s adherence to a strict zero-Covid policy dampened economic performance for the better part of the year. Resuming in the fourth quarter as these measures began to be relaxed, year-on growth ended up at 3% overall. Excepting only the period when the pandemic was at its worst, that is the lowest rate of twelve-month growth recorded in China since 1976. Reflecting geopolitical developments as much as a sluggish global economy, commodity markets remained quite volatile in 2022. With tensions between Russia and Ukraine turning into outright hostilities in late February, food, energy, and commodity prices in general took off and rose precipitously, particularly in the first half-year. However as leading monetary authorities’ tight- money policies gained traction in the second half, it provoked worries over global-recession risks that began to depress commodity prices once again. The price of a barrel of Brent crude, which averaged USD 70 in 2021, soared to USD 101 in 2022, about a 45% rise. The price subsequently receded, in part reflecting perceptions of global recession risks but also due to the EU’s introduction of a price cap on Russian oil in December. A barrel of Brent crude eventually ended up at USD 75, quite close to its lowest level in over a year, and very much looking like it might go even lower. However geopolitical worries sparked by Russia’s intimation that the use of tactical nuclear weapons in Ukraine was not out of the question and expectations that China’s relaxation of its Covid-19 measures could help support and even increase the demand for oil, oil prices held and began to rise again. In its January 2023 World Economic Outlook update, the IMF revised its previous 2022 global-economy and advanced-economy growth projections up and those for emerging-market and developing economies down. According to the IMF, in 2022 the global economy grew by 3.4%, advanced economies grew by 2.7%, and emerging/ developing economies grew by 3.9%. With demand indicators in the United States and the euro area performing better than expectations and in parallel with China’s relaxation of its zero-Covid policy restrictions, the IMF revised its 2023 growth forecasts upward saying that the global economy would grow by 2.9% in the new year rather than at its previously announced 2.7% rate. THE GLOBAL ECONOMY IS ESTIMATED TO HAVE GROWN 3.4% IN 2022. 3.4% 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 49 MİLLİ RE 2022 ANNUAL REPORT