2023-12-15 12:48:58
The share of the diamond sector in the total value of Belgium’s imports and exports continues to decline, partly due to the prospect of a possible European boycott of Russian diamonds, analyzes the National Bank (BNB) on Friday.
“The gemstone sector, and especially the diamond sector, continues to perform poorly,” the report summarizes. It represented 4.1% of exports and 3.7% of imports in 2019 but its weight fell to 2.9 and 2.5% respectively over the first ten months of 2023.
The National Bank cites several factors to explain this decline, including competition from cheaper artificial stones and the risk of a European boycott of Russian diamonds as part of sanctions linked to the invasion of Ukraine. The demand for diamonds in China also remains at half mast due to a relatively lackluster economy and a drop in the number of marriages. India, a major diamond cutting center, is also buying fewer rough diamonds due to the erosion of demand in the main markets for finished diamonds, adds the BNB.
More generally, from August to October, Belgian imports and exports expressed in value fell by 21.8 and 18.6% respectively. The National Bank notes, however, that a “turnaround seems to be beginning” with growth rates falling from -24.8 and -20.7% in September to -13.5 and -14.1% in October.
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