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Iran's local brands languish as shoppers now await western imports

IRANIAN officials are warning of enveloping economic stagnation if consumers wait for international brands to arrive in the wake of the nuclear deal with the west, Reuters reports.

From cars to fridges and televisions, shoppers are excited at the prospect of more choice and competition that should force Iranian manufacturers to lower prices and improve quality.

"Unfortunately some people thought prices would fall suddenly after the nuclear deal, and because of this the market is facing a recession," Iranian vice president Eshaq Jahangiri told state news agency IRNA.

Mehdi Pourghazi, head of the industrial committee of the Tehran Chamber of Commerce, predicted growth could fall to zero, compared to three per cent last year, said the agency.

"Home appliances sales have fallen five to six per cent after the nuclear deal," Industry Minister Mohammad Reza Nematzadeh was quoted as saying by state broadcaster IRIB.

Mr Nematzadeh said this month the social media campaign against carmakers was a threat to the economy, calling it "sinful, treasonous and anti-revolutionary".

He later apologised under pressure from President Hassan Rouhani, Iranian media reported, after his comments provoked public outrage.

"If we believe in the free-market we should accept that the customer is always right," said Mohammad Reza Sabzalipour, president of Tehran's World Trade Centre. "People supported this campaign because there is a void in the market.

But Mr Rouhani has also told foreign companies not to treat Iran solely as an export market after sanctions.

"If foreign companies or countries think they can take control of a market of 80 million people, they are mistaken, and we must not allow it," he said.