The median forecast for 2007 gross domestic product growth has been raised to 7.5 percent from 6.0 in the last survey in June, the Monetary Authority of Singapore (MAS) said in its report on the survey of 18 economists and analysts.

Their upgraded forecast came after Singapore raised its economic growth targets this year to between 7.0 and 8.0 percent following second-quarter growth that came in better than expected.

Gross domestic product (GDP) in the three months to June rose 8.6 percent over the previous year, better than the initial government estimate of 8.2 percent, the trade ministry said.

Economists revised upwards their median growth forecasts for most sectors, led by construction which they saw gaining 15.0 percent for the year, up from the 10.0 percent they previously forecast.

Financial services are seen growing at a median 13.5 percent, up from 10.2 percent in the last survey, while manufacturing is expected to grow a median 7.2 percent, up from 6.6 percent.

Economists raised their median growth projection in the wholesale and retail trade sector to 7.8 percent from 7.1 percent, but saw a slight fall in hotels and restaurants, down from a median 5.3 percent to 5.2 percent growth, MAS said.

Expansion in non-oil domestic exports was seen slowing to a median 6.2 percent this year from 7.0 percent predicted in the June survey, it said.

MAS distributed its survey on August 13, after stock markets around the world plummeted from fears of a global credit crunch.

As the fears took hold, Singapore Prime Minister Lee Hsien Loong said in late August that Asia could feel the impact of the market turbulence for the next three to six months but the region's foundations remained strong.

He added Singapore can expect to enjoy sustained long-term economic growth of 4.0 to 6.0 percent for the next five to 10 years if it continues to adapt to the changing external environment.

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