schrumpfen
to shrink
To lose size or volume, to become smaller, often through drying, cold, or washing.
Der Wollpullover ist in der heißen Wäsche leider geschrumpft.
Unfortunately, the wool sweater shrank in the hot wash.

to shrink
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to shrink
To lose size or volume, to become smaller, often through drying, cold, or washing.
Der Wollpullover ist in der heißen Wäsche leider geschrumpft.
Unfortunately, the wool sweater shrank in the hot wash.

As a verb of change of state, 'schrumpfen' (to shrink) always forms the perfect tense with the auxiliary verb 'sein' (to be). It describes something changing from a larger state into a smaller one.
Meine Ersparnisse sind letztes Jahr leider stark geschrumpft.
Unfortunately, my savings shrank sharply last year.
To describe the extent of the reduction, 'schrumpfen' (to shrink) is often used with prepositions. 'Auf' + accusative gives the final result, while 'um' + accusative indicates the difference.
Die Zahl der Mitarbeiter ist auf 50 Personen geschrumpft.
The number of employees has shrunk to 50 people.
You can tell whether the literal or figurative meaning is intended from the subject. If 'schrumpfen' (to shrink) refers to physical objects like clothing, it is literal. If it refers to abstract things like the economy or numbers, it is meant figuratively.
Der Apfel schrumpft in der Sonne.
The apple shrinks in the sun.
In the figurative sense, 'schrumpfen' (to shrink) is often used with economic or social terms. Typical collocations are: die Wirtschaft schrumpft (the economy is shrinking), die Bevölkerung schrumpft (the population is shrinking), Gewinne schrumpfen (profits shrink), or die Hoffnung schrumpft (hope shrinks).
Seit der Krise ist die Wirtschaft des Landes kontinuierlich geschrumpft.
Since the crisis, the country's economy has been shrinking continuously.
to grow / to wax
'wachsen' and 'schrumpfen' are opposites. 'wachsen' means that something gets bigger or increases. 'schrumpfen' means that something gets smaller or decreases. This can be very concrete, for example with clothing after washing, or figurative with money, groups, or numbers. For living things, you usually say 'wachsen' when they get bigger; for things or quantities, 'schrumpfen' fits when they get smaller.

Mein Pullover ist beim Waschen geschrumpft.
My sweater shrank in the wash.
Der Baum vor unserem Haus wächst jedes Jahr ein Stück höher.
The tree in front of our house grows a little taller every year.