Highlights.

The article presents an outlook on the economic and political sectors of Australia for 2010-2011. It expects a victory for Prime Minister Kevin Rudd in the next general election in the country due to the success of his party, the Labor Party in handling the economy during the global economic recession. The Reserve Bank of Australia is expected to raise its official cash rate (OCR) in order to prevent inflation in 2010-2011 period. It offers forecasts on the growth of the Australian economy in 2009 and 2010.