The Gozo Regional Development Authority, and the Gozo Business Chamber are publishing the results of the fourth Gozo Business Sentiment (GBS) Survey which was conducted jointly between the two entities.  This portrays the results of the Business Sentiment Survey as at September 2025.

The scope of the GBS is to gain deeper insights into sectoral developments and emerging trends.  This survey is done at a 6 monthly interval.  This business dialogue effort aims to foster regular communication with businesses operating in Gozo, gathering timely data on recent performance, business activity expectations, investment and employment trends, and pricing dynamics. By doing so, the GBS complements official economic indicators, which are often available only with a time lag. Additionally, businesses are encouraged to share perspectives on sector-specific developments and current economic issues, providing qualitative feedback that allows both the Authority and the Chamber to understand the underlying drivers of present and future economic trends.  The sampling methodology remains the same over each period, together with the sampling stratification which reflects the economic composition of the Gozitan economy.

The following are some of the highlights of the survey:

Business Conditions and Expectations

  • In September 2025, enterprises in Gozo continued to report overall positive business conditions, sustaining the upward trend observed in the previous survey round.
  • Net share of firms experiencing an improvement in business activity increased compared to both the previous quarter and the same period a year earlier.
  • Between March 2025 and September 2025, 38% of firms indicated that their business conditions had improved, up from 30% in the preceding six-month period.
  • Net balance of firms reporting improved business conditions rose to 30%, up from 14% in the previous survey round, marking the highest level recorded since the start of this exercise.
  • The secondary sector, which primarily includes manufacturing and construction firms, registered a net positive balance of 41%.
  • In the services sector, the overall net positive balance stood at 32%. Notably, enterprises in accommodation and food services (57%) and albeit to a lower extent education and health (50%) reported particularly strong overall positive sentiment. Positive net balances were also recorded in professional and scientific administrative and support services activities (36%) and financial, insurance and real estate activities (33%).
  • The latest survey results once again confirm that the shortage of suitable employees to support business operations remains the most pressing challenge for firms in Gozo.  The issue was particularly acute among businesses in the education and human health, tourism-related sectors, information and communication.
  • 40% of businesses highlighted cost pressures as a challenge, four percentage points higher than that reported in the previous survey held in March.
  • Slowdown in sales remains a concern, with its significance increasing when compared to March 2025 and in similar levels of that reported a year earlier.  Concerns about slowing sales were mainly reported by businesses in the wholesale and retail sector (56%).
  • 61%, are expecting stable conditions in the upcoming six months.  The secondary sector (manufacturing and industry) registered the strongest net positive balance at 41%.

Prices

  • Although cost pressures have eased somewhat since this exercise began in September 2023, they remain a significant concern for businesses in Gozo.  68% of respondents in September 2025 expect the prices of products and services essential to their operations to rise over the next six months
  • In September 2025, 32% of firms indicated that they expect to raise their selling prices in the coming six months,

Employment

  • The latest survey continues to reflect the strength of Gozo’s labour market. Over the past six months, 34% of firms reported expanding their workforce.
  • Half of all businesses plan to increase their number of employees in the next six months.
  • Hiring intentions are strongest within the secondary sector, particularly among manufacturing firms, where nearly 90% of businesses expect to recruit additional staff

Investment

  • 63% of firms expect to make an investment in the coming six months, the highest level recorded since the start of the exercise in 2023.

A Focus on Workforce Diversity and Inclusion

  • The supplementary focus of the September 2025 survey was on workforce diversity and inclusion, with particular emphasis on how employers in Gozo view these dynamics within their organisations.
  • Nearly 65% of participating businesses employ at least one non-local worker. Among these, 34% report that non-local employees make up to 25% of their workforce, 10% indicate a share of up to 50%, while 20% state that more than half of their workforce is non-local. This latter group is predominantly made up of firms with more than 50 employees, of which over half employ a workforce that is majority non-local.
  • Among firms employing non-local workers, nearly 50% reported having up to three different nationalities within their workforce. A further 18% indicated up to five nationalities, while 25% reported up to ten
  • Businesses were also asked whether they have policies or practices in place to support workforce diversity, such as equal opportunity frameworks, cultural sensitivity training, and integration measures. A clear majority (80%) reported already having such policies in place, while an additional 14% are considering their introduction.
  • When assessing the primary constraints faced by employers, language barriers emerged as the most commonly cited challenge, followed by cultural differences and difficulties related to employee retention and turnover.
  • Nearly half of respondents (45%) identified training programmes as the most valuable form of support for integrating and managing a diverse workforce. This was followed by requests for clearer guidance on legal and administrative processes (22%) and financial incentives (16%). about the potential effectiveness of such policy measures.
  • The most commonly cited benefit for employing non-local workers was the ability to fill labour shortages. Other advantages include access to skills that are not readily available locally and greater operational flexibility.

You can dowload the full Gozo Business Sentiment Survey here.