Global economic growth remained below expectations in 2019 following the slowdown in the last three quarters of the previous year. According to the IMF's World Economic Outlook Report in December 2019, global growth is being squeezed by a number of factors, including slow global demand, contracting world trade and low inflation. Trade wars between the USA and China and rising uncertainty in the global economy due to Brexit caused companies to act more cautiously. This in turn led to a decrease in production and global trade. To support the weakening world economy in the wake of rising geopolitical risks and widespread market uncertainty, the Federal Reserve decided to cut interest rates for the first time in 11 years. The Fed action was followed by the European Central Bank (ECB), which restarted asset purchases. The central banks of 40 developing countries, including Turkey, lowered interest rates at the end of the year. Although these policies may prevent a further slowdown, world economic growth is estimated at 3% in 2019, the slowest pace since the 2008-2009 global crisis. This expansion rate is below the 3.5% 40-year average but above the 2.5% threshold which indicates global recession.
After this weak performance in 2019, the IMF Economic Outlook Report forecast global growth of 3.4% for 2020 In the coming year, developed-world central banks are expected to continue their expansionary monetary policies. Meanwhile, recovery in emerging markets should further boost the world economy’s growth performance.
Turkey’s economy expanded in the third quarter of the year at an annualized rate of 0.9%, in line with expectations. After shrinking on a yearly basis since the fourth quarter of 2018, the Turkish economy demonstrated positive growth once again after three consecutive quarters of contraction. Inflation, after peaking at 25.24% in 2018, declined significantly in 2019 due to stabilizing foreign exchange rates, an expanding food supply and falling imports. Dropping to the single-digit level in September 2019, inflation is expected to remain below the 12% target set for the end of the year.
As of end-September 2019, Turkey recorded GDP of USD 734 billion. Full-year GDP growth of 0.5% is expected for 2019 As forecast by international financial institutions, such as the IMF and OECD, we too expect the Turkish economy to continue trending upward, after showing a promising growth performance from the third quarter of 2019, which we see as a rebalancing year.
Celebrating our 60th anniversary in 2019, Doğan Holding once again achieved successful financial and operational results this fiscal year. As a result, we maintained our position as one of the most successful and deep-rooted private sector conglomerates in Turkey. In keeping with its strategy of focus and efficiency, adopted in 2017, Doğan Holding further boosted its consolidated profitability and asset quality this reporting year. We achieved this by implementing numerous successful projects in the energy, petroleum products retail, finance, internet, entertainment, media, industry, automotive, tourism and real estate sectors.
In 2019, Doğan Holding recorded consolidated revenue of TL 13.3 billion, up 9%. Meanwhile, our EBITDA jumped to TL 679 million, up 12%. During the year, the Holding boosted gross profit by 6% to TL 1.1 billion. Net profit attributable to the parent company amounted to TL 617 million with the impact of the increase in financial revenues. In April 2019, Doğan Holding distributed gross dividend of TL 262 million from the 2018 profit.
During the reporting year, Doğan Holding’s total assets rose 3% to TL 11.2 billion. Consolidated revenues went up 9% to TL 13.3 billion in 2019, with Aytemiz and Doğan Energy Group accounting for the majority of the revenue increase. The fuel retail and electricity generation and trade segments also increased their share of total consolidated revenues for the year. As of year-end 2019, the Holding's consolidated gross profit increased 6% to TL 1.1 billion.
Doğan Holding's EBITDA jumped 12% to TL 679 million. We recorded a gross profit margin of 8.1% in 2019.
Thanks to successful initiatives executed under our focus and efficiency strategy in 2019, Doğan Holding reported net profit attributable to the parent company of TL 617 million.
In 2019, JCR Eurasia Rating assigned Doğan Şirketler Grubu Holding A.Ş. to the highly investable grade category and upgraded its Long-Term National Rating as ‘AA (Trk)’ / ‘Stable’ and its Short-Term National Rating as ‘A-1+ (Trk)’/ ‘Stable’. JCR Eurasia also affirmed its Long-Term International Domestic Currency Rating as ‘BBB’/Negative.
SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş. raised Doğan Holding's Corporate Governance Rating from 94.18 to 94.99 on November 5, 2019 In the Global Corporate Governance Index (GCGI) that was announced by SAHA on October 8, 2019, Doğan Holding is included in Group 1.
Our share buyback program went into effect after being approved at our General Assembly in 2019 We also completed our dividend distribution during the year. Doğan Holding continued to instill confidence in the markets with its solid financial structure, international partnerships, investments and affiliates.
In 2019, we launched the self-service project at Aytemiz, our company engaged in fuel retailing. In addition, we issued Aytemiz’s first financing bonds amounting to TL 50 million.
Among our affiliates in the field of energy, Boyabat Elektrik Üretim ve Ticaret A.Ş., operating Boyabat HEPP with an annual electric production capacity of 1 TWh, was included in the capacity utilization mechanism in 2019 Boyabat’s loan restructuring agreement also went into effect during the year. Doğan Holding acquired 100% of the shares of Erzurum PV, with a capacity of 24.7 MW on March 18, 2019 for USD 3.2 million (TL 16 million). In 2019, we concluded a loan restructuring agreement for Aslancık HEPP.
The Hürriyet Emlak – Goldman Sachs partnership was officially finalized during the year. Kanal D Romania, one of our companies operating in internet, entertainment and media, acquired Radio Impuls, a Romanian radio broadcaster. DMC concluded a partnership agreement with Warner Music.
We launched second-hand vehicle and rental operations at Suzuki Turkey, our affiliate operating in the automotive sector.
In order to expand in the finance sector, a strategic priority at Doğan Holding, we applied to the Banking Regulation and Supervision Agency for permission to establish an investment banking firm: D Investment Bank The Holding also decided to increase the founding capital of the investment bank from TL 150 million to TL 200 million.
We developed the innovative Doğan Investment Model during our sustainable financial restructuring in 2017 This forward-looking business model combines our deep-rooted holding organization with a rational and modern investment fund structure. With this approach, Doğan Holding moves forward with a promising, innovative, balanced and profitable portfolio. We will continue creating value for our shareholders, investors and our country, as we have for the last 60 years.
I would like to extend my gratitude to all our stakeholders who supported Doğan Holding's operations in 2019.
President of the Executive Committee