This thesis consist theory about Washington consensus, external debt and economic growth in transition countries and research about those three parts in a way of tables and graphs. At the beginning hypothesis is settled and based on researches, at the end it will be decided and proved if this hypothesis can be true and accepted or just rejected. In order to better understand and introduce Washington consensus, it’s important to look into the historical development of this consensus and how everything started in transition countries. History of it will be provided because everything has its beginning from the past events. Washington consensus was brought because External debt is the sum of all debts from a country and legal people towards broad. It is usually considered the borrowed money from organizations and banks. There are few indicators of state of external debt. In this thesis there will be showed only some of those indicators that are important for proving a hypothesis. External debt-GDP ratio is one of the most important indicators because it’s showing country’s ability to pay back its debt. Second indicator is external debt-export of goods and services that is showing the ability of country to sustain debt in long-term. Third indicator is showing percentage of external debt in international reserves. All indicators were calculated based on data for transition countries and they will be showed in a form of tables in order to see data for 2014th year and for the period from 2010 till 2014. Except numbers, there will be provided some graphs for easier seeing visually interpreted results. Economic growth is increase in production, production capacity and other parts of economy. It is increase in the total output of economy affected by technology, labor, capital and production per worker. All three parts separately have extremely strong meaning but they are also interconnected. Washington consensus has impact on external debt and economic growth, but it’s not clear if those impacts are positive or negative. According to the working hypothesis, there are more negative than positive effects for transition countries, but after researches it will be known if this hypothesis is true or not.