Israel’s net polished diamond exports totaled $4.3 billion in the first six months of 2011, growing 33.9% year-over-year, according to the country’s Ministry of Industry.

Polished diamond imports increased by 49.8% to $2.8 billion. The ministry did not provide information by carat.

Diamond Controller Shmuel Mordechai said that total diamond trade increased by about 40% compared to last year, and by 25% compared to 2008.

Another contributor to the growing exports is price inflation in the global markets. According to an IDEX Online research, average prices in the first six months of 2011 are 12.8% higher than in the first six months of 2010.

The U.S. continues to be Israel’s leading polished diamond export destination, receiving 48% of gross exports by value. Following the U.S. are Hong Kong (27%), Belgium (7%), Switzerland (6%) and India (3%).