This comes after an 8.5 percent expansion in the first quarter of the year, and is Singapore's strongest growth in two years.

Compared to a year earlier, gross domestic product grew 8.2 percent in the second quarter, the Ministry of Trade and Industry (MTI) said in its advance estimate for the quarter on Tuesday.

Economists had expected second quarter GDP to grow 6.6 per cent from a year earlier.

The economy grew 7.9 percent in 2006.

The strong growth was led mainly by the construction industry, which is estimated to have expanded by 17.9 per cent in the second quarter, a 11.6 per cent hike from the earlier quarter. Buoyed by the construction of the Integrated Resorts and a flurry of other projects, growth in this sector is believed to be at its fastest pace since the third quarter of 1997.

Also showing robust growth is the manufacturing sector, spurred by strong growth in biomedical manufacturing and transport engineering. The sector is estimated to have grown by 10.2 per cent, up 4.4 per cent in the first quarter.

Estimates for the services producing industries put the growth at 7 percent, compared with 7.2 percent in the first quarter, with financial services leading the growth.

The advance estimates, based largely on data from April and May, gives an early indication of the economy's performance in the April to June period.

With a slower global economy, Singapore's growth is expected to be more moderate. However, new areas such as financial services, tourism and a fast-recovering construction sector may serve as boosters.

On the back of expectations that the economy will remain robust, the government in May raised its full-year GDP growth forecast to 5 to 7 percent, from 4.5 to 6.5 percent previously.