Germany continues to suffer from anemic economic growth. In 2004, the German economy grew at disappointing 1.7 percent, and German analysts have forecast 2005 growth at 0.7 percent. This low growth reflects Germany's large structural difficulties hampering its long-term economic expansion. German labor markets must become more flexible, and a weakening corporate sector must be revived. While the end of 2004 saw German union power wane and corporate investment increase, it is up to the German government to foster a more prosperous environment for businesses.