Belgian diamond trade is recording ‘catastrophic’ figures, warns National Bank
According to the National Bank of Belgium (NBB), the diamond trade in the country is recording ‘catastrophic’ figures. In a new analysis, the National Bank points out several reasons for this collapse, including the relocation of diamond processing to India and the consequences of the war between Russia and Ukraine.
Belgian diamond imports and exports have been in decline for several years. The National Bank revealed that while diamond imports and exports were still worth about 15 billion euros in 2014, they were worth just 8.5 billion euros in 2023, a reduction of almost half. The share of diamonds in the total trade has fallen from more than 4 per cent to less than 2 percent in the space of almost ten years, and the figures for 2024 show no sign of improvement.
It's furthermore worrying that there has not been a single month since the beginning of 2023 in which diamond trading has recorded a positive growth rate compared with the corresponding month of the previous year. The National Bank also presented specific figures about the first nine months of this year: imports of precious metals and gemstones fell by 22.8 per cent, exports by 26 per cent.
Global and local causes
The diamond sector is in decline worldwide. Demand is eroding, causing stocks to swell and prices to fall. Producers are even considering production restrictions.
There are also several other factors specific to Belgium. Diamond processing - historically an important activity in Antwerp - has largely moved to India, where labour costs are lower. The trade in rough diamonds has declined significantly, and Belgium has become more of a centre for the trade in finished diamonds.
The international competitiveness of the Belgian sector has also been undermined by the emergence of new players such as Botswana and the fallout from the Western boycott of Russian diamonds, some of which used to pass through Belgium but are now being traded in Dubai.
#FlandersNewsService | An expert displays a diamond © Punit PARANJPE / AFP
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