Israel's Export Slowdown Eases in 2018

RAPAPORT... Israel's polished-diamond exports showed signs ofstabilizing in 2018 after three years of heavier declines, according togovernment data.Shipments slipped 2.5% to $4.48 billion for the year, thenation's Ministry of Economy and Industry reported Sunday. That compares withdrops of 20%, 6% and 4% in 2015, 2016 and 2017, respectively, Rapaport recordsshow. "Following a few years of...crisis for the diamond trade, we sense shoots of optimism...for the future of thesector," said Yoram Dvash, president of the Israel Diamond Exchange. Changes to the way thestatistics were compiled had a negative impact on the year's growth figure,which would have shown a marginal increase had the system remained the same,Dvash argued. The ministry didn't explain what the adjustments to the calculations had been."Either way, I'm veryhappy about the fact that the sharp decline in exports has stopped, andabout the indications that the sector is entering a better era," Dvash added. "I'mhopeful that the situation will improve in 2019." Polished imports grew4.1% to $3.04 billion, boosted by new rules enabling dealers in Israel toinspect diamonds for up to 30 days tax-free, the ministry added. Rough exportsincreased 1.1% to $2.25 billion. The ministry didn't provide a growth rate forrough imports, but said the total amount was $2.66 billion - which works out 7%lower than the figure it reported for 2017. Israel reports its diamond-tradefigures on a net basis, which means they exclude goods that dealers ship acrossa border and subsequently bring back unsold.Image: A diamantaire examines a stone during the 2016 International Diamond Week at the Israel Diamond Exchange. (Shutterstock)