Armenia’s Diamond Production Sliced in Half

Armenia’s diamond manufacturing industry polished $72 million worth of diamonds in the first half of the year, a sharp 48 percent decline from last year, the country’s Ministry of Trade and Economic Development reported.

According to Gagik Mkrtchian, head of the jewelry department at the ministry, Armenia’s diamond output in 2006 declined over 17 percent to $268 million.

The continued shrinking of the country’s diamond manufacturing caused it to lose its status as Armenia’s number one export item, and it now accounts for just one percent of gross industrial production.

Perhaps reflecting Armenia’s diamond industry woes, Lev Leviev’s Shoghakn, the country’s largest diamond-cutting plant, has cut a large number of jobs, according to the Armenian press.

Mkrtchian pointed at a weak international market as an explanation. 60 percent of Armenia’s output is exported to the U.S.