A majority of businesses in Gozo are planning fresh investment over the next six months, according to the latest Gozo Business Sentiment Survey, highlighting continued confidence in the island's economic prospects despite rising international uncertainties.

The survey, carried out by the Gozo Regional Development Authority and the Gozo Business Chamber, found that 64 per cent of businesses intend to undertake capital investment in the coming six months, slightly exceeding the level recorded in the previous survey round. Transportation and storage businesses reported the strongest investment outlook, with all surveyed firms in the sector indicating plans to invest.

Investment activity has already been strong. More than half of surveyed firms (56 per cent) reported carrying out capital expenditure during the previous six months, with the highest levels recorded among businesses operating within the knowledge economy, including arts, entertainment and recreation.

The findings come against a backdrop of improving business sentiment. While 58 per cent of respondents described business conditions as unchanged over the previous six months, 34 per cent reported improvements and only 9 per cent experienced deterioration. Overall sentiment remains well above the survey's long-term average.

Forward-looking indicators are even more positive. Nearly half of respondents expect business conditions to improve over the next six months, resulting in the highest future sentiment reading recorded since the survey's launch. Businesses operating within the knowledge sector reported the strongest expectations for growth.

The survey also points to continued expansion plans among employers. Almost two-thirds of businesses intend to increase their workforce, reflecting confidence in future demand and activity levels. Recruitment demand is strongest for workers with technical, operational, machinery-related and digital skills, underscoring the growing importance of specialised competencies across Gozo's economy.

External financing remains an important enabler of growth. Nearly two-thirds of surveyed businesses currently utilise external funding, with traditional bank loans and credit facilities representing the most common source of finance. Businesses that do not use external financing generally reported that they have no current need for additional funding rather than facing access barriers.

At the same time, the survey identified opportunities to improve awareness and accessibility of financing instruments. While 36 per cent of respondents described access to finance as relatively easy, many indicated uncertainty about available options, suggesting scope for greater information and guidance for businesses seeking funding support.

Although rising costs have become a growing concern for businesses, particularly in light of higher international energy and transportation prices, firms remain broadly optimistic about Gozo's economic outlook. The combination of strong investment intentions, recruitment plans and positive business expectations suggests that many enterprises continue to position themselves for growth in the months ahead.