The cash-flow improvement follows because sustained low inflation creates the scope for nominal interest rates to move to lower levels. The achievement of sustained lower inflation made it possible for the household sector to incur more debt – largely for housing and durable consumption purposes – without a significantly heavier interest burden.
However, this positive economic outlook should not blind us to the fact that the longer-run outlook for growth in Germany is sub-par. What I am thinking of here, for example, is that, in the coming years, the number of persons going into retirement will surpass the number of young people 2/8  BIS central bankers' speeches  entering the job market.