More than 70% of the world’s factories will be shutting down by 2025, a year earlier than previously estimated, according to a report released Thursday by the World Bank.
In the past, China’s industrial production had been rising as the country faced a steep economic slowdown, but as the economy cooled in the second half of the 20th century, its industrial production slowed down.
In fact, in the past two decades, industrial production in China has grown only about 7%, while the U.S. industrial production has increased about 25%.
The World Bank says the U, China and India are set to be the world leaders in industrial production by 2025.
The report said that China, with its vast size and massive population, is likely to lead the way in the country.
India, which is home to some 1.2 billion people, is set to overtake China as the world leader in manufacturing by 2025 according to the World Resources Institute, the U-shaped economic research group.
India will be the country with the largest manufacturing capacity by 2020.
China’s industrial output will continue to grow despite the slowing global economy.
The World Bank said that as China faces slowing economic growth, the country is likely increasing its investment in technology to boost production.
China will be making investments in more advanced manufacturing technology to help it regain the lead in manufacturing, the World Watch Monitor reported.
The organization cited the Chinese government’s push to increase manufacturing output to 30% of its gross domestic product (GDP) in 2020 from the current 20% and invest $2 trillion to 30%.