Following a slowdown after the global financial crisis, the world economy expanded moderately in 2015. Increasing concerns about economic growth, fluctuating financial markets, weakening domestic demand, falling oil and commodity prices were some of the main factors affecting the global economy during the year. Although the level of economic activity varies considerably across countries, global growth is projected to have been 3.1% in 2015.

Developed countries, the US and Eurozone in particular, continued to experience a moderate rebound in 2015. While America's economic recovery was stronger than other advanced economies, the Eurozone, including debt-troubled Greece, posted relatively slower growth when compared with the United States. Japan, on the other hand, has long struggled to achieve steady, balance growth since the global financial crisis began, with the country's economy once again falling short in 2015.

Even though the global economy has not yet reached a steady state, the low interest-rate and expansionary monetary policies implemented by central banks across the world have stood out as significant efforts to revive the world's economy.

Meanwhile, emerging markets recorded weak economic growth in general. Although oil prices, which fell sharply due to excess supply, had some positive impact on developing countries, this bloc was still negatively affected by the monetary policies of advanced nations. China's economic slowdown, in particular, increased global risk perceptions.

Turkey entered 2015 in the shadow of the Central Bank's monetary policies, looming general elections, the Federal Reserve (Fed)'s decision to raise interest rates, coupled with various domestic and international uncertainties. Both the political and the geopolitical environment following the June election exacerbated the depreciation of the Turkish lira in 2015. Although economic activity remained lower than expectations at the start of the year, the Turkish economy posted modest growth in 2015. As the manufacturing industry gains momentum and domestic consumption picks up, the Turkish economy continues to expand.

As in the previous year, oil prices and the foreign trade deficit continued to decline at the beginning of 2015; as a result, Turkey's current account gap narrowed.

From May onwards, inflation followed a downtrend, then fluctuated before ending the year at 8.81%.

Much like inflation, the country's unemployment rate initially declined in 2015, falling to single digits, but then reversed course to exceed 10% towards year's end.

Even though the Fed's monetary policy for 2016 is unclear, global risk perception remains high, economic growth is slow, and Turkey is exposed to significant geopolitical risks, including the Russia crisis, the Turkish economy is expected to post faster, more domestic consumption-driven growth in 2016, compared to the prior year.

Although Turkey aims for consumer spending to lead the economy's expansion in 2016, an approximate one-percentage-point increase is expected in the domestic savings rate in the coming year. The private pension system is the strongest supporter of this strategy. Following major legislative changes in 2013, including the 25% state contribution to encourage participation in the private pension system, new regulations due to take effect in 2016 will further support the PPS's participation, steady payments and permanence.

The Turkish private pension sector maintained rapid growth in 2015, reaching more than 6 million* participants and a total of TL 48 billion* in pension funds. Meanwhile, Garanti Pension, a major player in this fast-growing sector, continues to help nearly 1 million participants increase their retirement savings with a total fund size of TL 7.6 billion.

As in previous years, we increased our premium production in the life insurance segment, our second core business area, to TL 329 million in 2015. While we maintained steady growth, the Company's financial results reflected our success. Always striving to expand in a sustainable manner, Garanti Pension once again became the most profitable** company in the sector, for the sixth consecutive year.

In 2015, Garanti Pension further expanded its strong customer base while the Company's innovative approaches to employee and customer focus were recognized for excellence both at home and internationally. We were very proud to receive the "Gold" certificate from Investors in People (IiP), the only international quality standard in human resources.

In addition to achieving operational and financial success, Garanti Pension always strives to contribute to society as a whole. Our Company took this principle one step further in 2015 and set out on a journey towards sustainability. We will continue our sustainability efforts in the coming periods to leave a better, more livable world for future generations.

Always standing strong, Garanti Pension will continue to undertake successful initiatives and lead the sector. I would like to express my deepest gratitude to all our employees, who have helped us create this wonderful portrait of success and pride, and to all our participants, policyholders and stakeholders.

Respectfully yours,