Issue link: https://maltatoday.uberflip.com/i/1523564
8 gozotoday | FRIDAY • 5 JULY 2024 BUSINESS "LOOKING ahead, and despite current challenges, business activity in Gozo is generally ex- pected to improve or remain relatively stable," the Gozo Busi- ness Chamber and the Gozo Re- gional Development Authority (GRDA) said in a report survey- ing business sentiment. "This however should not in any way reduce the continu- ous efforts towards adopting and implementing a regional focused strategic approach. Within this perspective, the efforts should remain relent- less in addressing some of the inherent difficulties faced by the Gozitan economy, while adopting a strategic outlook which will translate in concrete actions which are implemented at a policy level." In September 2023, 80 busi- nesses in Gozo were surveyed on business sentiment. Follow- ing this, another 80 business- es in Gozo were surveyed in March 2024. Overall, business conditions of businesses operating in Gozo remained relatively stable throughout the 12-month peri- od from April 2023 to March 2024. 60% of businesses inter- viewed in September 2023 and March 2024 expressed the view that their business conditions in the preceding six months re- mained the same. In general, businesses operat- ing in Gozo reported that two of the main concerns that they are currently facing relate to employee shortages and cost pressures, with these concerns being strongly reported in both September 2023 and March 2024. These concerns are in line with the main challenges currently being faced by busi- nesses operating in Malta. More than half of the busi- nesses surveyed in September 2023 and March 2024 cited the lack of suitable employees as a major concern. This difficul- ty faced by businesses operat- ing in Gozo to find adequate skilled staff reflects the robust labour market environment and the historically low unem- ployment rates. Moreover, the majority of businesses outlined that their business was facing challenges related to cost pressures. These challenges largely reflect the post-pandemic increase in in- ternational prices which were further inflated by the war in Ukraine. However, it is noteworthy to highlight that in March 2024, fewer businesses identified cost pressures as a primary concern compared to six months prior. This indicates a relaxation of cost pressures over the period from September 2023 to March 2024. In fact, 61% of surveyed firms in March 2024 anticipate an in- crease in the prices of products and services necessary for their operations over the upcoming six months. However, despite the expectation of increased input prices, being high in March 2024, this is less signif- icant when compared to the expectations reported in Sep- tember 2023. Meanwhile, 35% of firms an- ticipate prices to remain un- changed, marking a six-per- centage-point increase from the expectations reported in September 2023. The majority of firms sur- veyed in March 2024 anticipate no change in the prices of the products and services they of- fer over the next six months. Specifically, 60% of businesses expect their output prices to remain stable. Meanwhile, 38% anticipate an increase in their prices, with only 3% expecting a decrease. Over the past year, nearly 40% increased their workforce. More than half said they plan to expand their workforce within the next six months, particu- larly in the tourism, manufac- turing, and professional servic- es sectors. Nearly 60% of businesses al- so made investments in the past year. More than half plan Cost pressures and employee still main concerns for Gozo Businesses operating in Gozo reported that two of the main concerns that they are currently facing relate to employee shortages and cost pressures