Well according to the Economist, it does! They found a nice link between GDP and reported levels of happiness.
Personally I'm slightly surprised that grey Britain is up so high. I've not been able to find the full statistics, so I've no idea which one of these dots is Israel.
Weirdly I had a look at the legatum project, which aims to do the same thing. It ranks Israel 10th in Average life satisfaction Rankings, but only 36th in the overall prosperity rankings. Basically there is a big gap between the expected and real happiness of Israelies.