Diamond sector falls back sharply in Belgian trade figures
Figures released by the National Bank of Belgium on Friday show that the share of imports and exports that is accounted for by the diamond sector is declining. This is due in part to the expected European boycott of Russian diamonds following Russia's invasion of Ukraine.
In its press release the National Bank said "The precious stones sector continues to do poorly, and this especially the case with diamonds". During the first 10 months of this year the sector's share fell to 2.9% of Belgium's total exports and 2.5% of total imports. Before the coronavirus pandemic in 2019 the sector still accounted for 4.1% of exports and 3.7% of imports.
The National Bank cites several factors that account for the fall. The diamond sector is suffering from competition from cheaper, artificial stones. Furthermore, relatively poor economic conditions mean that there is lower demand for diamonds in China. Another factors is that there are fewer marriages. With less demand from China and other countries, the major diamond cutting country India is buying fewer uncut diamonds. On top of this there is the prospect of a European boycott of Russian diamonds and Russia is the world's largest producer of uncut diamonds. "The prospect of a possible European boycott of Russian diamonds means that a lot of Belgian diamond dealers have adjusted their trade flows and are trading less through Belgium", the National Bank says.
Big fall in imports and exports
The figures also show a significant fall in imports and exports from 1 August to 31 October. Imports were 21.8% lower than during the same period in 2022. Meanwhile, total exports fell by 18.6%. However, the National Bank says that there is "cautious hope that possible turning point has been reached" as in October the falls was much smaller than they were in September.