PARIS ([FWN]) - The economy will stagnate in the fourth quarter and show growth of just 0.1 pct in the first quarter of 2002, the national statistics institute INSEE said. Growth will only begin to pick up in the second quarter, to 0.4 pct, INSEE forecast director Michel Devillier said. France has based its 2002 budget on growth of 2.25-2.5 pct. The institute said that 2001, for which growth of 2.1 pct is still forecast, will have marked "a turning point in the expansion phase of the French economy, which began five years ago." "The events of September 11 noticeably increased uncertainty," in particular by accentuating a trend towards decreased spending by businesses, the report said. On the other hand, INSEE said tax cuts would keep consumer spending strong in early 2002.