The Gozo Regional Development Authority, and the Gozo Business Chamber are publishing the results of the second Business Sentiment Survey which was conducted jointly between the two entities.  After the first Gozo Business Sentiment (GBS) Survey which was published in June 2024 and which covered a period of one year, despite interviewees being surveyed two times with an interval of a six month period, the two entities have decided to start publishing this survey every six months.  This should give a more timely perspective.

The scope of the GBS is to gain deeper insights into sectoral developments and emerging trends.  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 data which is being published today reflects the results of the survey conducted in September 2024.

The following are some of the highlights of the survey:

Business Conditions and Expectations

  • Business conditions were relatively stable for businesses operating in Gozo during the six-month period from April to September 2024. Approximately 60% of businesses surveyed in September 2024 reported that their business conditions had remained unchanged over the prior six months, with this stability observed across all sectors.
  • The shortage of employees continues to be the leading challenge for businesses in Gozo, a reflection of the tight labour market and historically low unemployment rates. Additionally, over 40% of businesses reported challenges linked to cost pressures, largely driven by post-pandemic international price increases, and further impacted by conflicts in Ukraine and Israel. However, concerns about cost pressures are gradually easing, with this issue reported as 22 percentage points lower in September 2024 compared to a year prior.
  • Business activity in Gozo is expected to be less optimistic over the next six months, although most businesses surveyed in September 2024 anticipate stable conditions. Specifically, 50% of respondents expect their business environment to remain unchanged during this period.  In this context while the arts, recreational, and entertainment sectors are anticipating better conditions, the construction sector stands out predicting a decline in activity.

Prices

  • Most businesses reported that they do not anticipate a change in the prices of the products and services they offer over the next six months. Specifically, 60% of businesses expect their output prices to remain stable.

Employment

  • Half of the surveyed businesses plan to maintain their current workforce levels with the sectors most likely to expand their workforce primarily being the wholesale and retail trade, industry, and construction sectors.  The survey also expanded on the theme of skills, with the skills most in demand being those related to tools, machinery, and similar areas, along with skills in communication, collaboration, and related fields.

Investment

  • Over the last 6 months, 44% of businesses in Gozo reported making some form of investment in their operations, with the highest shares of reported investment being in the following sectors: education and human health, construction, arts and recreation, and industry.

Reskilling and Upskilling

  • According to the latest results from the Gozo Business Sentiment (GBS) survey, only 45% of businesses in Gozo have utilised government schemes to upskill or reskill their workforce since they began operations.  The most frequently accessed initiatives were work trial programs (including those for students), the Access to Employment (A2E) scheme, and other staff training initiatives.  Those who had not utilised any government schemes for workforce reskilling or upskilling were asked to explain why. The primary reason cited was that businesses felt such schemes were unnecessary.  Other reasons included a lack of awareness of these schemes and concerns that participation would disrupt daily operations.  Additional reasons for not applying included a lack of time to complete the application process, though several businesses indicated they plan to allocate time to apply in the future.

You can access here the report and the infographic.