An important explanation for this is that capital in the latter economies flowed disproportionately into the non-tradable/services sector, which in general has lower productivity growth.
Many of you may have an impression that 2016 was a year in which pessimistic views on the global economy prevailed. However, actual data indicate that the global economy is not as bad as it appears. The pace of growth in advanced economies has accelerated recently, mainly led by the solid U.S. economy (Chart 1).