ÇHS AR21-ENG-030622

3 Çelebi Ground Handling Inc. 2021 Annual Report The soaring commodity prices made one of the headlines in 2021. Oil prices lagged behind in capturing the recovery that occurred in the prices of many commodities from the second half of 2020 due to the downside pressure the pandemic created upon global oil demand. This situation was reversed in 2021 as economies normalized, causing the per barrel price of Brent-type oil to skyrocket to USD 85.82 and end the year with a 50.83% rise. Similarly, gas, another member of the energy complex, closed 2021 with 46.85% increase. On the agricultural commodities front, on the other hand, numerous factors ranging from climate change to rapidly increased global demand affected agricultural commodity prices in 2021, hence global food prices reached the peak of the past decade with 28.10% increase according to the Food and Agriculture Organization of the United Nations (FAO). On another note, the rise in fertilizer prices pushed farmers’ fertilizer costs up, acting as one of the major causes of the overall rise in food prices. Hopes grew stronger that the pandemic might come to an end in 2022. Projections relating to global economy vary depending on the outcomes of the vaccination. The continuation of the Covid-19 pandemic and the emergence of different variants that spread more rapidly such as the Omicron variant that followed the Delta variant indicate that the pandemic-associated uncertainties will continue to take a toll on the world economy. Yet, the increasingly milder symptoms in Omicron cases and loosening of restrictive measures implemented in the first quarter of 2022 nurture the hopes that the pandemic might come to an end. A possible tightening beyond the forecasts in governments’ fiscal policies in 2022, geopolitical developments centered around Russia-Ukraine, developments in the Chinese financial and property markets, and fluctuations in capital flows to developing countries gain the foreground as potential factors that may act upon global economy. The Turkish economy outgrew the forecasts in 2021. Being one of the few countries to register positive growth in 2020, Turkey achieved a growth that outdid the forecasts and its potential in 2021, benefiting from internal and external demand. According to the chained volume measure, the Turkish economy grew by 7.3%, 21.9%, 7.5% and 9.1% in the four quarters of 2021. 2021 GDP growth was 11.0% year-on-year. The rapid growth performance was produced by the household consumption expenditures that increased significantly with the contribution of the low base effect and exports that experienced record levels. Having ended 2021 with a double-digit growth figure, the Turkish economy is anticipated to maintain its positive growth performance in 2022 at a slower pace. The Medium Term Program (MTP) for 2022-2024 projects 5.5% growth for 2022. The consumer prices index (CPI) has been high throughout the year. As the high levels in exchange rates and in global commodity and energy prices exacerbated inflationary pressures through the cost channel, the CPI that has been high throughout the year was up by 36.08% over its value in December 2020, marking the highest level of the past 19 years. The domestic producer prices index (D-PPI), on the other hand, surged by 79.89% as compared to December 2020. Record levels were attained in exports in 2021. 2021 was a year of difficulties for global trade due to the worldwide supply chain issues and the sharp rise in transportation costs, while Turkey was able to benefit from this situation owing to the advantage granted by its location. Export was responsible for about half of the growth in 2021. Based on the general trade system, export grew by an annual 32.8% in the twelve months to end December 2021 and was worth USD 225.3 billion, whereas imports increased by 23.6% to USD 271.4 billion. The ratio of exports to imports was 83%. In 2021, tourism revenues surpassed the forecasts as a result of vaccination, and together with exports, it has been telling upon the declined current deficit. The predicted abatement of the pandemic in 2022 with the support of vaccination and medications keep the positive expectations for tourism alive in 2022. While it is considered that the realization of postponed travel plans might positively affect the tourism industry in 2022, the developments in Russia and Ukraine, which have a significant share in the number of incoming tourists, will certainly be a determining factor for our country’s tourism revenues.