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Definition of shrinkage : 1. Decrease in value; depreciation.
2. The act of shrinking; a contraction into less bulk or measurement.
3. The amount of such contraction; the bulk or dimension lost by shrinking, as of grain, castings, etc.

Synonyms:

falloff, thin, dent, cut, collapse, retract, fall, depression, contract, abatement, compact, cutback, slump, decline, shrinking, wax and wane, constrict, shoplifting, plunge, drop-off, drop, shrink, step-down

compaction, compression, abridgement, abbreviation, condensation, deflation, contraction

dispossession, debit, exhaustion, dissolution, forfeiture, expropriation, ruin, loss, deprivation, dissipation, penalty, setback, attrition, divestiture, privation

curtailment, diminution, deduction, reduction, depletion, diminishment, lessening, truncation, erosion, depreciation, concentration, decrease, decrement

Usage examples:

• " Full weight and no shrinkage," said Wilson, heartily, extending his hand.
• In the fossil there is rarely any trace of the form of these cavities, in consequence of the shrinkage of the surrounding tissues. - "The Student's Elements of Geology", Sir Charles Lyell.
• If you pick up the shrunken pages of your Times or Tatler, do you wonder at the reason for their shrinkage or do you realize there are fewer literates in the world than there were ten years ago? - "Greener Than You Think", Ward Moore.