Tunisia has a diverse economy, with important agricultural, mining, energy, tourism, and manufacturing sectors. Governmental control of economic affairs while still heavy has gradually lessened over the past decade with increasing privatization, simplification of the tax structure, and a prudent approach to debt. Real growth, averaging 5 percent for the latter half of the last decade, slowed to a 15-year low of 1.9% in 2002 because of agricultural drought, slow investment, and lackluster tourism. Better rains in 2003, however, pushed GDP growth up to an estimated 6 percent, and tourism also recovered after the end of combat operations in Iraq. GDP growth is likely to ease to the 5-5.5 percent range in 2004 as the agricultural sector is unlikely to continue to expand as rapidly. Tunisia has agreed to gradually remove barriers to trade with the European Union over the next decade. Broader privatization, further liberalization of the investment code to increase foreign investment, improvements in government efficiency, and reduction of the trade deficit are among the challenges for the future.