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"impoverished nation" is a correct and usable phrase in written English.
It is typically used to describe a nation or country with a low standard of living and/or limited resources. For example, "Because of rampant inequality and corruption, the small nation of Khumalo is an impoverished nation."
Exact(60)
The war left a broken, impoverished nation.
They pretended to teach a newly impoverished nation the forgotten virtues of austerity.
Unfortunately, this is only a pipe dream considering the impoverished nation we've become.
Being engaging is not considered a virtue in the journalism of an impoverished nation.
The notion that the impoverished nation could threaten the world's sole superpower is nonsense.
Large ransoms have become a way to make money in the impoverished nation.
The new, U.S.-built highways seemed to be a godsend for this impoverished nation.
Their frustration threatens already weak social cohesion in the western hemisphere's most impoverished nation.
The government wants revenues from hydropower to develop an impoverished nation.
The situation in this impoverished nation of 4.5 million worsens by the day.
In 1989, China was largely closed, an impoverished nation of bicycles and socialist collectives.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com