Singapore has raised its full-year growth forecast for the second time in less than three months with a prediction the economy will expand at 4 to 5 per cent. In a National Day address last night, Prime Minister Goh Chok Tong said: 'We have much to be proud of.' The city-state's gross domestic product grew a robust 6.7 per cent in the second quarter, official figures showed. Mr Goh said the rate of expansion, which put first-half growth at 3.7 per cent, was very strong. The new growth projection is roughly in line with most private-sector expectations. Mr Goh said: 'We were helped by the strong US economy and the recovery in the global electronics industry. 'We also benefited from the improvement in the regional economies, and the return of confidence to South Korea, Thailand and Malaysia. 'However, our quick turnaround is not due entirely to the external environment.' The prime minister praised Singaporeans' 'rational and cohesive' response to the crisis, saying this had made a critical contribution. 'We accepted wage cuts and supported worker retraining,' he said. 'We continued to build long-term capabilities, invest in education and infrastructure, and liberalise our financial sector.' There have been concerns recently in some senior quarters that things might be coming back too fast, too soon, particularly in the stock and property markets where prices appear to have raced well ahead of fundamentals. 'Some sectors are probably recovering faster than we would like,' Trade and Industry Minister George Yeo Yong Boon told Business Post. The last thing Singapore's elders want now is asset prices rushing back into another boom-bust cycle. When Singapore celebrated its last birthday a year ago, the picture looked bleak, with its trade-driven economy sliding into technical recession. After a decade of regular 7 to 10 per cent annual growth, Singapore's economy grew just 0.3 per cent last year. The government began this year expecting another stagnant period, projecting the economy would either grow or shrink by 1 per cent. This was revised upwards to between zero and plus 2 per cent in May when signs of a recovery first emerged and again yesterday amid even greater expectations. Key sectors like manufacturing, tourism and financial services have been resurgent, though recovery has not been equal across the board. Mr Goh warned Singaporeans not to become complacent.