According to Reuters news on September 16, Japan's exports in August recorded a double-digit decline for six consecutive months as the global demand slowed down due to the COVID-19 outbreak and exports to the United States fell sharply, casting a shadow on the vision that trade will lead the economy out of the deep recession. Official data showed Japan's total exports fell 14.8% year-on-year in August, less than the 16.1% decline expected by economists polled by Reuters. That means Japan's exports have fallen for 21 consecutive months, setting a record for the longest decline since a 23-month decline ended in July 1987. It plunged 19.2% in July. The fall in exports was dragged down by a drop in exports of automobiles and fossil fuels, but the pace of decline was slower than in July as economic activity showed signs of picking up, the report said. "Strong demand for ICT related to working at home helped drive exports of electrical machinery down only 5.5% year-on-year," said Tom Learmouth, Japan analyst at Capital Economics. "However, exports may not return to pre-outbreak levels until early 2022." By regions, Japan's exports to the United States fell 21.3% year-on-year in August, hit by declines in engine parts and construction machinery. Japan's exports to China, its largest trading partner, increased by 5.1% in August from a year earlier, boosted by a surge in semiconductor exports. Analysts say Suga, who won the Liberal Democratic Party's election on Monday, faces a formidable challenge in getting the economy back on track after its worst postwar contraction in the second quarter.According to the report, Japan’s August export decline was dragged down by the decline in exports of automobiles and fossil fuels, but the decline was slower than in July because economic activity showed signs of heating up. Capital Macros Japan analyst Tom Learmouth said: “The strong demand for ICT technology related to home office has helped the export of electrical machinery to only decline by 5.5% year-on-year.” “However, the export volume may not return to before the outbreak until early 2022. From a regional perspective, Japan’s August exports to the United States decreased by 21.3% from the same period last year, mainly due to the decline in engine parts and construction machinery. Boosted by the surge in semiconductor exports, Japan’s exports to its largest trading partner, China, increased 5.1% in August from the same period last year. Analysis believes that Yoshihide Suga, who won the election within the Liberal Democratic Party of Japan on Monday, will face a huge challenge: how to get the economy back on track after the worst economic contraction since the second quarter of the war.