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The phrase "this is compounded by" is correct and commonly used in written English.
It is used to express the idea that a certain situation or problem is made worse by another factor or issue. Example: The company's financial struggles are compounded by the current economic downturn.
Exact(59)
This is compounded by looming energy challenges.
This is compounded by complex psychological trauma.
This is compounded by parents' pressure to prescribe drugs.
This is compounded by microphones, which are inherently stupid.
And this is compounded by several other factors.
This is compounded by the perilous financial position of local authorities.
This is compounded by the composer's own shorthand and his disjointed verbosity.
All this is compounded by either a denial or lack of awareness among those affected.
This is compounded by companies that offer highly paid jobs recruiting only from the top of this hierarchy.
This is compounded by Google's personalization of search results, which means different users see different results based on their interests.
(For flyers, this is compounded by the high altitude blocking nasal passages, and therefore access to aromas).
More suggestions(17)
this is contributed by
this is reinforced by
this is complicated by
this is produced by
this is complemented by
this is accompanied by
this is indicated by
this is coupled by
this is computed by
this is included by
this is exacerbated by
this is extended by
this is mounted by
this is underscored by
this is cleared by
this is driven by
this is opposed by
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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