Lack of credit, the uncertainty of an election year and rising material and oil costs were the principal causes.
The Salvadoran Construction Industry Chamber (CASALCO) had predicted zero growth.
German Rivas of Laprensagrafica.com published statements by the Executive Director of CASALCO in his article: "The expectations for 2009 are not very optimistic.
With a few days left before the end of 2008, there is concern about the inventory and little or no sale of houses in the market due to the credit restriction.
Mario Rivera, president of the Salvadoran Chamber of the Construction Industry (Casalco), added that the companies still have apartments or houses and that "they are unable to sell them because there is no financing for family," and therefore run the risk that the builders will not be able to fulfill their commitments with the banks.