What does Psalm 117:2 mean?

The term hesed is used to imply a constant, loyal, ever-present caring love. God demonstrates this attribute many times in Scripture (Exodus 34:6; Deuteronomy 5:9–10; Psalm 21:7; 103:11; Jeremiah 31:3). All people and nations (Psalm 117:1) should thank the Lord for His patience and involvement in our lives.

Israel had especially good reasons to praise God for His faithfulness. Despite Israel's frequent disobedience and idolatry, the Lord still loved and preserved the nation (Jeremiah 29:11; 31:3–14). Believers in Christ have similar motivation. Even when a Christian wanders from the straight and narrow path, the Lord loves the wanderer and stands ready to forgive and restore him (1 John 1:8–10). Furthermore, the Lord is faithful today. He cannot lie (Titus 1:2) and He will do what He has promised (Hebrews 10:23).