The performance has been evaluated in terms of real GDP growth rate, inflation, unemployment rate, exchange rate, net export and cash rate. Introduction 3 Relation between real GDP growth and inflation and unemployment rate 3 Real GDP growth and inflation 3 Real GDP growth and unemployment rate 4 Relation between net export and real exchange rate between Australia and USA 6 Australia’s cash rate and Federal Reserve’s fund rate 8 Macroeconomic Outlook for Australia 9 Conclusion 9 Reference list 11 Introduction Australia is the 14th largest economy