State Treasurer Peter Gutwein has acknowledged that the almost $10 billion writedown in the GST pool to 2022-23 will be "challenging" for Tasmania.

The revised forecast, attributed to flagging consumer confidence in mainland states, was outlined in the federal government's Mid-Year Economic and Fiscal Outlook, released on Monday.

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"[It's] a document that presents some challenges for Tasmania," Mr Gutwein said.

"This is something that, as a state, we have anticipated.

"In the [state] budget that I brought down in May, we indicated then that there were headwinds in the national economy, that the major economies of Victoria and New South Wales had lost confidence, and, importantly, what we needed to do was to invest heavily into our own state economy to sandbag us against ... national headwinds."

Mr Gutwein highlighted the government's $3.6 billion investment into infrastructure as being a key means of mitigating the downturn in GST receipts, saying it was already increasing business confidence, attracting private investment and creating further jobs.

"That is sandbagging our local economy and what we're seeing is increasing state revenues," he said.

The Treasurer wouldn't be drawn on whether the GST writedown would result in cuts to projects and services, stressing that he would have more to say on MYEFO when the state government's Revised Estimates Report was released early in the new year.

Opposition finance spokesman David O'Byrne said Mr Gutwein's "time for patting himself on the back is over".

"Peter Gutwein has wasted the good times and now he must explain to Tasmanians how he has racked up more than $1 billion in debt on the taxpayer credit card, with no plan to pay it back except more short-term panicked cuts that compromise Tasmania's health and raids on [government business enterprises]," he said.

MYEFO landed on the same day that SGS Economics & Planning released its latest findings on the economic performance of Australian cities and regions in 2018-19.

The report showed Launceston's GDP growth rate increased by 3 per cent.

Hobart's growth rate, meanwhile, was 4.3 per cent.

Tasmania's overall GDP growth rate (3.6 per cent) was second only to that of Melbourne's economy (4 per cent), representing the state's most significant growth since 2003-04.

MYEFO forecast real GDP growth of 2.25 per cent, which is 0.5 per cent less than what was forecast before the May election.

It also shows Australia is on track to achieve a $5 billion surplus in 2019-20, $2.1 billion less than forecast in April's federal budget.