Rivalry between French and Italian interests in Tunisia culminated in a French invasion in 1881 and the creation of a protectorate. Agitation for independence in the decades following World War I was finally successful in getting the French to recognize Tunisia as an independent state in 1956. 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. Progressive social policies also have helped raise living conditions in Tunisia relative to the region.Increased rain helped to push GDP growth to an average rate of 5% in 2003-05. However, a recession in agriculture, weak expansion in the tourism and textile sectors, and increasing import costs due to rising world energy prices cut growth to 4% in 2006. Tunisia is gradually removing barriers to trade with the EU. 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 ahead.