In 2010 we emerged from the aftermath of an unprecedented global crisis and entered into a new period of economic activity. At the beginning of year 2010, anxiety regarding the speed and depth of the recovery continued to prevail and in 2011 it became apparent that the measures taken had not prevented the widely feared contraction in global commerce, production and capital movements. Therefore, there is still a need for new, serious measures to make the present system resistant to the factors that precipitated the crisis.
The global economic growth slowed down starting with the second quarter of 2011 while advanced economies continued to grow at different paces. Mounting concerns regarding sovereign debt sustainability problems across euro area, especially in Greece, and the slower-than-expected recovery in the U.S. labor market has intensified the downside risks regarding the global activities. Meanwhile, emerging economies, faced with inflationary pressures arising from strong domestic demand and elevated commodity prices continued to tighten monetary policy while resorting to macro prudential measures to contain the adverse effects of the global imbalances on their domestic markets.
The Turkish economy recovered quickly at the beginning of 2010, as the global economy began to show signs of emerging from the crisis and it has maintained its positive outlook in 2011, despite global development. Turkey achieved remarkable growth of nearly 8% in 2010, emerging from the crisis at an acclaimed pace that gained international recognition. Indicators point to a continued growth trend, particularly in the first half of 2011. While 2010 was marked by low inflation and high growth, developing countries may well witness higher inflation and decelerating growth in 2011. Still, we believe that even if the pace of Turkey’s economic growth slows down relatively, it will be able to maintain a level of growth above the global average.
Finding ways to minimize the impact of adverse developments in global markets on the Turkish economy will be of critical importance in the upcoming period. Turkey must open the way to rapid, sound and sustainable growth in the intermediate and long term by emphasizing advanced technology and high value-added sectors, giving priority to R&D and innovation and increasing market diversity.
In 2011, Organik Holding will continue its vigorous policy of investing in our companies so as to maximize productivity and profitability, while also pursuing an active approach to evaluating new investment opportunities. We will spare no effort to raise our competitiveness through technological improvements in our sectors of operation and to emphasize innovation and environmental awareness. We will endeavor to minimize the impact of regional economic fluctuations by diversifying our export markets. While striving to improve our operational and financial performance, we aim to achieve higher standards in such areas as corporate governance, investor relations and customer satisfaction.
We are confident for the future despite the problems that the global economy is facing. At the same time, we are prepared for increasingly volatile markets and intensifying competition. This means that the winners will be those who are faster, more flexible and more successful than their competitors. The Organik Group team will actively take advantage of opportunities and work hard to shape Organik Group's future.
Chairman of the Board of Directors