Publication overview

Transition report update 2006

Abstract

This year’s Transition Report Update reviews macroeconomic developments in central eastern Europe and the Commonwealth of Independent States. The transition countries continued to perform strongly in 2005, compared with other major regions of the world. However, a modest weakening of performance is expected in 2006. The special focus of the Transition Report Update is remittances. Remittances from workers living abroad have become an important source of capital in many transition countries, totalling more than 10 per cent of GDP in some countries and exceeding foreign direct investment in over a third of the region. A survey conducted by the EBRD studying the uses of this source of finance found that a small, but significant share, of this funding is used to develop local enterprise.