# shrinkage

/ˈʃɹɪŋkɪdʒ/ (US) · /ʃɹˈɪŋkɪdʒ/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/shrinkage
Updated: 2026-05-19

## Definition

the act of losing money or value, especially in a business or the stock market. It can also mean the physical act of something getting smaller.

For teachers: the reduction in the value of an asset, such as a stock or real estate, or the physical reduction in size of a material. In a financial context, it refers to the loss of capital or market value.

## Examples

- The company suffered a lot of shrinkage during the recession.
- After the merger failed, the company experienced significant shrinkage in its market share and had to lay off several employees.
- Economists warned that the sudden shrinkage of the housing market would lead to a long-term decline in consumer confidence and a slowdown in overall economic growth.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.