Turkish economy experienced a challenging year as a result of volatility in foreign exchange and interest markets in 2018. However, thanks to decisions put into practice with strong policy reaction, remarkable developments were achieved in terms of maintaining financial stability.

In terms of global growth we have left behind a year with a relative declining outlook, particularly for the developing countries. Global protective trend in foreign trade, continuance of normalization process of US Central Bank’s (Fed) monetary policy and political concerns over Italy and UK had influences on the global economy in 2018.

Despite the slowdown of developing economies, US economy pursued a consistent progress and Fed continued to reduce its balance sheet and increase interest rates. European Central Bank (ECB) did not change its monetary policy standing despite strengthening downward risks on Euro Zone economy and decreasing inflation; and it is not expected to start interest hike process until next year. Economic activities of European Union which is a significant trade partner of Turkey will continue to be of great importance for our country.

In 2018, a remarkable decrease in expectations for oil prices and inflation was observed. Concerns around trade wars and slowdown of Chinese economy raised concerns for global growth. In this process, due to increasing volatility in financial markets from time to time, partial devaluation was recorded in currencies of developing countries.

Our bank, with an identity which carries the norm of “being the leader and morale bank of our country” in its strategy, took significant and pioneering steps in supporting the real economy and consumers.

Turkish economy experienced a challenging year as a result of volatility in foreign exchange and interest markets in 2018. However, thanks to decisions put into practice with strong policy reaction, remarkable developments were achieved in terms of maintaining financial stability. Economic balancing process became clearer with tightened financial conditions. It has been observed that foreign demand has contributed more than domestic demand to growth. We can say that this situation supports the decreasing trend in inflation in the short and medium term.

With the proactive decisions taken and adopted by decision and policy makers, the magnitude of the economic volatility was significantly reduced.

Ziraat Bank continued its pioneering position in supporting the economy as one of the major players in our country’s economy. Our bank, with an identity which carries the norm of “being the leader and morale bank of our country” in its strategy, took significant and pioneering steps in supporting the real economy and consumers.

Operating as the leader bank in banking industry during recent years, Ziraat Bank continues to grow in a sustainable manner with a focus on real sector through its business model and will pursue its main management strategy based on efficiency.

DR. AHMET GENÇ
Chairman of the Board of Directors