The Eastern Partner (EaP) countries are heterogeneous in their size, population, resource endowment and their stage of economic and institutional development. This diverse group was strongly affected by the 2008-09 crisis in several ways: through external demand (particularly in the EU and the Russian Federation), terms of trade adjustment (Belarus and Ukraine) and the decline of remittances and FDI (Armenia, Georgia and the Republic of Moldova). After a period of growth until the end of 2011, the pace of recovery from the effects of the crisis has slowed in response to the deteriorating external environment and, in several countries, unfavourable domestic factors. The region’s vulnerabilities remain significant due to its reliance on external demand to support growth, terms of trade pressures and the volatility of remittances.