Over a third of Gozo firms report improvement

The fourth Gozo Business Sentiment (GBS) Survey has found that 38% of firms in Gozo reported improved business conditions between March and September 2025, up from 30% in the previous six-month period. 

Conducted jointly by the Gozo Regional Development Authority and the Gozo Business Chamber, the biannual survey gathers data on recent performance, expectations, investment and employment trends, and pricing dynamics. The survey provides a timely overview of the island’s economic trends and complements official economic indicators, which are often published with a lag. Businesses are also encouraged to provide qualitative feedback on sector-specific developments and economic issues.

The secondary sector, which includes manufacturing and construction, recorded a net positive balance of 41%. The services sector posted 32%, with accommodation and food services (57%) and education and health (50%) reporting the strongest overall positive sentiment. Professional, scientific, administrative, and support services (36%) and financial, insurance, and real estate activities (33%) also recorded positive balances.

The survey highlighted ongoing challenges for firms, including shortages of suitable employees, particularly in education, healthcare, tourism-related sectors, and information and communication. 

Cost pressures affected 40% of businesses, four percentage points higher than in March 2025, while slowing sales were mainly a concern for wholesale and retail firms (56%). Looking ahead, 61% of businesses expect stable conditions over the next six months, with the secondary sector showing the strongest net positive balance (41%).

Prices and employment

Despite some easing since September 2023, cost pressures remain significant. Around 68% of firms expect the prices of products and services essential to their operations to rise in the next six months, while 32% plan to increase selling prices. Workforce growth remains strong, with 34% of firms expanding staff over the past six months, and half planning to recruit more employees in the next six months. Hiring intentions are highest in the secondary sector, particularly among manufacturing firms, where nearly 90% plan to add staff.

Investment

Investment intentions are at a record high, with 63% of firms planning to invest in the next six months, the highest level since the survey started in 2023.

Workforce diversity and inclusion

The survey also examined workforce diversity and inclusion. Nearly 65% of businesses employ at least one non-local worker. Among these, 34% reported that non-local employees make up to 25% of their workforce, 10% up to 50%, and 20% more than half. Firms with more than 50 employees accounted for the majority of the last group. Among firms employing non-local workers, almost half reported up to three different nationalities, 18% up to five, and 25% up to ten.

Most businesses (80%) already have diversity policies in place, such as equal opportunity frameworks, cultural sensitivity training, and integration measures, with 14% considering their introduction. 

Language barriers, cultural differences, and employee retention were cited as the main challenges, while training programmes were considered the most valuable form of support (45%). 

Other support requested included clearer guidance on legal and administrative processes (22%) and financial incentives (16%). Businesses cited the main benefits of employing non-local staff as addressing labour shortages, accessing skills not readily available locally, and increased operational flexibility.

The survey provides a detailed snapshot of Gozo’s economic performance and emerging trends, giving both the Gozo Regional Development Authority and the Gozo Business Chamber insight into the factors shaping the island’s business environment.