Of course, profit margins are likely to recede from their current high levels as labor and other costs pick up and productivity growth moderates. Even so, given the successful efforts to pare costs, firms are set to benefit from new investment in plant and equipment.
Moreover, those acceding countries that were  BIS Review 51/2003  3  formerly centrally planned economies have been able to establish functioning market economies, thus pursuing the process of transition. There remain, however, formidable challenges. The task at hand is to advance real convergence while safeguarding and, where necessary, enhancing macroeconomic and financial stability.