Based on materials from Rapaport.

Armenia’s cut diamond and gold production dropped 27 percent in the first four months of 2006, reported Armenia Diaspora on May 15. Twelve companies that are monitored by the trade and industry development ministry produced $64.6 million worth of goods, 75 percent of which was manufactured by diamond manufacturing companies. Armenia’s sale and exports during the four month period dropped 24 percent compared with 2005.

The ministry blamed the drop on the global markets, saying that higher oil and gold prices, coupled with depreciation of United States dollar value have significantly cut demand for luxury items. The ministry also blamed lack of effective management, lack of financial resources and less rough diamond imports from Russia for the decline.