The diamond trade continues to collapse in Belgium after the sector recorded more "catastrophic" results, according to an analysis by the National Bank of Belgium published on Friday.
For several years now, diamond imports and exports have been in decline in Belgium. Since the beginning of 2023, there has not been a single month in which the diamond trade has recorded a positive growth rate compared with the corresponding month of the previous year.
With negative growth rates of between -25% and -45%, the sector is well below the Belgian average for foreign trade.
In 2014, diamond imports and exports were still worth some €15 billion, while in 2023 they had almost halved to €8.5 billion. The share of diamonds in the total trade has fallen from more than 4% to less than 2% in the space of almost ten years.
This year's figures suggest the sector both globally and in Belgium appears to be continuing its marked decline.
Antwerp, dubbed the 'diamond capital of the world', has suffered in recent years due to diamond processing having largely moved to India, where the sector can exploit the country’s cheaper labour costs, the NBB noted. Historically, Antwerp had an important role for diamond processing.
As a result, Belgium has become a centre for trade in finished diamonds, while the rough diamonds trade has declined significantly.
Belgium's international competitiveness in the industry has also been challenged. In addition to the emergence of new players such as Botswana (who in August discovered the second largest diamond in the world), Belgium is also suffering from the fallout of the West's boycott of Russian diamonds. Some of these diamonds that used to transit through Belgium are now sold in Dubai.
Illustration picture shows the opening of the 'Carat+' fair at the 'Antwerp World Diamond Centre', Sunday 06 May 2018. Credit: Belga / Nicolas Maerterlinck
Globally, the sector has also been shrinking as demand erode, causing stocks to rise and prices to fall. Some producers are currently considering production restrictions.
Synthetic diamonds are also hindering demands – particularly as they are popular with the world’s biggest diamond consumers, the United States. China’s economic slowdown has also penalised the sector after seeing a demand decline in the world’s largest export market.
In December 2023, the EU decided to ban Russian diamonds. Antwerp has been one of the world's most important diamond centres since the 16th century. In October, the city's diamond sector comprising some 1,600 companies and provides around 6,000 jobs.
