Every year, ahead of Yom HaAtzmaut, Israel’s Independence Day, the country’s Central Bureau of Statistics releases the latest population figures. As Israel turns 78, the country’s population stands at 10.2 million, up 1.4% from last year, which the bureau said is one of the highest growth rates in the Western world. 

In the last year, 177,000 babies were born in Israel, and 27% of the population is under age 14. 

If having a baby is an expression of hope, then clearly Israelis, with the highest birthrate by far among developed countries, are an optimistic bunch. According to the CBS, 91% of Israelis are satisfied or very satisfied with their life, 96% are satisfied or very satisfied with their family and even two-thirds of Israelis are happy with their economic situation. 

That would explain why, despite the events of recent years, Israel was ranked the eighth-happiest country in the world, according to the World Happiness Index released last month. 

You couldn’t blame Israelis if they felt differently. After all, the last year was a roller-coaster of emotions. 

This time in 2025, there were still dozens of hostages in Gaza, with weekly protests for their freedom but little by way of any plan or agreement to get them out. Fighting continued in Gaza, even though Hamas’ leadership had largely been eliminated, the Houthis were regularly launching missiles at Israel and Iran was rushing toward a nuclear weapon.

Then came the 12-day war with Iran in June, with the U.S. joining for the coda to destroy much of the Islamic Republic’s nuclear facilities. Finally, in October, the last of the living hostages held in Gaza passed from Hamas’ hands, and they were home.

But with the ceasefire came mixed feelings about its sustainability and whether it would actually disarm Hamas — still an open question — and thousands of IDF soldiers remain in Gaza even now. Shortly after that conflict came to an end, concerns about Hezbollah and Iran rebuilding their missile capacity grew.

The war with Iran that began in late February, with the U.S. and Israel partnered in the bombing runs, buoyed Israelis’ pride in their military and optimism that it would be the war to end all wars with the Islamic Republic. Now, with U.S.-imposed ceasefires with Iran and Lebanon that are unpopular in Israel, there’s a sense of uncertainty as to whether the war will bring about greater long-term security or whether Israelis will be running from missile fire into safe rooms again soon.  

Meanwhile, Israel’s economy is doing well overall, with an unusually strong shekel reflecting optimism in the markets — though that also has its downsides for Israelis. Plus, 2026 is an election year, which has translated to an especially ugly and divisive state of affairs in Israel over the past decade.

Still, not long after Israel came in eighth place in the World Happiness Index and soon after the Iran ceasefire was announced, comedian Eli Finish from the long-running sketch comedy show “Wonderful Country” wrote in an Instagram story that went viral: “Did we win [in the Iran war] or not? What nonsense. I don’t know about you, but I saw an army that did things out of a Hollywood movie; I saw a nation that popped open a beer in the safe room; I see Iran in shock. Call me optimistic, but I’m not the only one. Am Yisrael Chai. … What other option do we have if not to be optimistic?” 

The backlash to Finish’s sunny worldview came soon after from commentators in Haaretz, Israel’s public broadcaster Kan and on social media who said optimistic Israelis were deluding themselves. But there was also a backlash to the backlash, and Finish said he never felt so much love from people on the street as he has since publishing the post.

As usual, if you judge by comments on social and traditional media, optimism is hard to come by. But in polls, on the street and at Independence Day celebrations across the country, despite no shortage of reasons to feel otherwise, Israelis are a hopeful bunch as the Jewish state begins its 78th year.