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The phrase 'further exacerbating the problem' is correct and can be used in written English.
You can use it when you are talking about a situation that is already bad or is getting worse. For example: The government's new policies are further exacerbating the problem of unemployment in the region.
Exact(10)
Further exacerbating the problem is the fact that many existing buildings house the federal government and nonprofit organizations, which cannot be taxed.
First Great Western said overrunning engineering works, with no trains running between London Paddington and Reading, were further exacerbating the problem.
Further exacerbating the problem is how loosely journalists will throw these terms around.
Moreover, the regenerative capacity of skeletal muscle declines with aging, further exacerbating the problem.
Moreover, the oxidative degradation proceeds during storage and in vivo, thus further exacerbating the problem [8, 9, 10].
Concurrently, with coxa magna, the center of rotation of the femoral head is effectively displaced distally, further exacerbating the problem (Fig. 1).
Similar(50)
Water mismanagement further exacerbates the problem, he said.
The city's woes, of course, are not isolated, and that further exacerbates the problem.
The degradation of the coral, the key breakwater of the ocean's energy, further exacerbates the problem.
Looking ahead to the UK outside the EU, he added: "Stricter immigration controls would further exacerbate the problem for the UK construction sector".
By early afternoon on Tuesday, Kenya had issued a statement saying that "the action by President Yusuf further exacerbates the problem in Somalia" and that "the incessant political wrangles and competition" among Somalia's leaders "is totally distractive" and "unhelpful to the region".
More suggestions(19)
further increasing the problem
further exacerbating the loss
further exacerbating the surplus
further exacerbating the underrepresentation
further complicating the problem
further exacerbating the fertilizer
further exacerbating the process
further exacerbating the manpower
further exacerbating the disease
further exacerbating the issue
further exacerbating the inability
further exacerbating the cycle
further exacerbating the difficulty
further exacerbating the organification
further exacerbating the situation
further propagating the problem
further compounding the problem
further exacerbating the trauma
further exacerbating the need
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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