RAM Ratings announced that Spain’s gross domestic product (GDP) is expected to increase by 7.4 percent for 2010 following the Government’s declaration that GDP increased by 8.95 percent in the second quarter of this year.

Moreover, the agency said in a report that the country’s GDP growth was likely to grow at a slower pace of 5.6 percent in the second half of the year, which was in proportion to potential output.

According to the statement issued by RAM Rating, “Resilient domestic demand drove consumption to a 6.5 percent growth while a 9.4 percent rebound in investment activities in H1 contributed significantly to the rapid recovery.”

The agency also added that changing trade patterns was holding up outside demand.

As per the statement issued by the agency, “Export growth is attributable to sustained (and increasing) demand from newly industrialised economies and China.”

RAM Rating said that this pattern was projected to carry on as economy in the Asian economic systems still power much of the existing international growth momentum.

The agency added, “For the full-year, exports are projected to expand 12.9 percent, with imports clocking up 18.3 percent backed by a pick-up in industrial and investment activities.”