MILLIRE ENG2024

According to the World Economic Outlook Report published by the IMF in January 2025, the global economy, which is estimated to have grown by 3.2% in 2024, is projected to grow by 3.3% in both 2025 and 2026. This rate remains below the 2000–2019 average of 3.7%. The report also includes growth forecasts of 1.7% for advanced economies and 4.2% for emerging markets and developing economies in 2024. For 2025 and 2026, growth rates of 1.9% and 1.8% are projected for advanced economies, and 4.2% and 4.3% for developing economies, respectively. On the other hand, geopolitical risks, most notably the Ukraine-Russia war and developments in the Middle East, are increasingly weighing on the global economy by heightening uncertainty. In addition to physical conflicts, steps to be taken by the new U.S. administration, particularly concerning customs tariffs, are also adding to the uncertainty of the current economic outlook. The impacts of tight monetary policy have become prominent in Türkiye In Türkiye, the tightening policies implemented since the second half of 2023 to ensure price stability and enhance both the budget and external balances have continued throughout 2024. In 2024, a year marked by uncertainties and challenges in global economic conditions, the Turkish economy entered a period of balancing its growth dynamics, exhibiting a more stable trajectory. While the growth achieved in the first quarter, driven by consumption expenditures, started to decelerate from the second quarter onward due to financial conditions, the Turkish economy resumed a growth trend in the last quarter of the year, ultimately achieving a growth rate of 3.2% by the end of 2024. In March 2024, the CBRT raised its policy rate to 50%. As inflation entered a downward trend, the Bank lowered the policy rate to 47.5% at its final meeting of the year, underlining its commitment to a data-driven approach in its interest rate decisions. In 2024, despite the positive performance in budget revenues, particularly tax revenues, elevated budget expenditures, influenced by the ongoing impacts of the earthquake disaster, have led to an expansion of the budget deficit. CPI concluded the year 2024 at a level of 44.38%, and in the forthcoming period, it is anticipated that fiscal policy will provide increased support in the fight against inflation. In 2024, the CBRT’s reserves also recorded a significant increase. This positive development was partially reflected in an upgrade in the country’s credit rating and a decline in risk premiums. While the current account deficit continued to narrow due to the increase in tourism revenues and especially the measures taken regarding gold imports, the current account deficit/GDP ratio, which stood at 3.5% in 2023, fell to below 1% in 2024. In 2024, the CBRT’s reserves also recorded a significant increase. This positive development was partially reflected in an upgrade in the country’s credit rating and a decline in risk premiums. GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 11 2024 Annual Report