Israeli export of polished diamonds dropped 18.9% in the first half of 2012, amounting to $3.26 billion, compared to $4.02 billion in the same period in 2011.

A semiannual review by Shmuel Mordechai, who acts as the Industry, Trade and Labor Ministry's diamond controller, further said that the net value of rough diamond exports dropped to $1.51 billion from $2.26 billion in H1-2011 – a 19.3% fall.

Diamond imports were down as will, as Israel imported $2.2 billion worth of polished diamonds – a 21.7% drop for the corresponding period last year.

Exports of diamonds in June came to $95 million, compared with $250-300 million in an average month, according to ministry records.

Mordechai attributed the declines to the slowdown noted in world economy in general, as well as to a crisis in the diamond industry.

The United States remained Israel's largest market with a 47%, followed by Hong Kong (29%), Belgium (7%), Switzerland (6%) and the UK (2%).