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





