BERLIN, May 7 Reuters German exports are expected to stagnate this year, following a 1.8 decline last year, the German Chamber of Commerce and Industry DIHK said on Tuesday.

Although there are signs of a slight upturn in the global economy, companies are not benefiting from it enough because of political uncertainty and geopolitical risks, the Chamber39;s regular AHK World Business Outlook suggested.

The weak development of German foreign trade at the turn of the year and the slight improvement in business expectations and investment intentions point to a challenging year, despite small rays of hope, Volker Treier, DIHK head of foreign trade, said.

The German economy is highly tradeoriented and therefore sensitive to international events that weaken foreign demand.

German companies with activities abroad were increasingly optimistic about global economic developments, the DIHK survey showed.

Of the 4,300 companies surveyed, 31 expected an economic upturn at their overseas locations in the current year, boosted by slowing inflation rates and the hope of interest rate cuts.

In the last survey in November, the figure was 22.

One in five companies still anticipated an economic slowdown, compared with 28 in the previous survey.

There are signs of an upturn on many global markets. This gives many companies hope that the mood will improve again, Treier added.

However, the improved economic expectations are not yet materialising in an equally strong revival in…