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Investment Dictionary:

Debtor Nation

A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.

Investopedia Says:
Nations that have invested fewer resources than the rest of the world has invested in them are known as debtor nations. In 2006, The United States was the world's biggest debtor nation, posting a trade deficit of more than $61 billion and total debt of trillions of dollars.

One of the biggest contributors to America's status as debtor is the availability of inexpensive manufacturing capabilities in China, as more and more U.S.-based businesses spend vast amounts of money in China for that purpose.

Related Links:
Countries track money coming in and going out through something called the balance of payments. Learn more here. What Is The Balance Of Payments?
Learn how a country's current account balance reflects the country's economic health. Understanding The Current Account In The Balance Of Payments
Learn how the capital and financial accounts of the BOP are intertwined and what they tell us. Understanding The Capital And Financial Accounts In The Balance Of Payments
Find out what it means when more funds are exiting than entering a nation. Current Account Deficits


 
 
Banking Dictionary: Debtor Nation

Nation that is in arrears in interest or principal payments on debts to bank lenders or international development agencies, such as the World Bank. Debtor nations have an unfavorable balance of trade, meaning an excess of imports over exports, or have a net inflow of capital from foreign investors.

 
Economics Dictionary: debtor nation

A nation that owes more to other nations than it is owed.

 
 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Economics Dictionary. The New Dictionary of Cultural Literacy, Third Edition Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin. All rights reserved.  Read more

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