China is our second most important external market for these two categories of goods, which account for 43% of the  4  See again “The China trade syndrome” in the Charlemagne section of the Oct 4th issue of The Economist. 5  EU trade data are taken from Eurostat, based on SITC product classification.
Diamond revenues have helped the Government to generate savings, hence there is no need for government borrowing. This has two implications for the business environment. First, the lack of government borrowing means that the private sector is not “crowded out” for investment resources. Second, the usually buoyant revenues have enabled the Government to reduce taxes to very low rates. Notwithstanding these achievements, problems remain.