There have been quite cases of racism in the news recently, so this question seems relevant. Notable examples of racism include:

• In Ireland, a large riot by more than 500 right-wing extremists, as reported by the BBC. This shocked many, because Ireland has a reputation for welcoming immigrants and tourists. The BBC article points out that "At the moment - in contrast with most of the democratic world # - no politician [in Ireland] has been elected to any office - either at local council or national level - on a far-right platform", but the riot gives cause to worry that change is afoot in the nation's politics.
• The surprise victory of Geert Wilders' PVV (Freedom Party) in the national election this week in the Netherlands, as reported by the BBC, with analysis of the implications by the BBC. The Dutch also have a strong reputation of welcoming visitors and immigrants, and is the easiest country through which to enter the EU. There is a significant chance that the Netherlands will enact tougher immigration laws as a result of the PVV victory.
• The racist outpourings around the world against both side of the Israel/Hamas war. There is, of course, fault on both sides of the conflict, but many people voicing opinions on the matter are unable to show any balance in their views, and the war has let the genie of previously suppressed racism out of the bottle.
• In Poland there has long been understandable anti-Russian sentiment. Now the undercurrent of anti-Ukrainian feelings, which have been around since at least the end of World War II, are on the rise, triggered by issues over Ukrainian grain imports and military and financial support being given as a result of the Russian invasion of Ukraine. There is more information about Poland's anti-Ukrainian sentiment on Wikipedia.
• In Italy there are a lot of protests against illegal immigrants, of which Italy gets more than its fair share due to its proximity to Africa. These protests are spilling over into Italian politics, making the country more racist.
• In Spain the tolerance for immigrants, both legal and illegal, has been drastically reduced. Spain has illegal immigration from North Africa, for similar reasons to Italy, which is having financial and social consequences for the country. Legal immigrants have also had huge impacts, with locals priced out of the housing market because of foreigners buying and renting property. Shops in many areas now stock less local produce and more products imported from Germany (Sauerkraut, German sausages and German beer) and the UK (baked beans, HP sauce, steamed puddings and English beer), targeting the ex-pat community. Bars and restaurants have also undergone a change to accommodate the ex-pats, accompanied by price rises.
• Since the election of Viktor Orban to Prime Minister of Hungary, the country has been a thorn in the side of the EU Commission and a hotbed of racism. It doesn't look like things will change any time soon. Hungary refuses to honour their commitments to the EU, in terms of accepting refugees.
• France, despite government policy and established legislation, continues to have outbreaks of racism, as described on Wikipedia. Racism against blacks, Arabs, Jews, Germans (the French have still not forgiven WWII - Germans visiting France often pretend, in vain, to be English to avoid the racism), more recently against Britain (due to Brexit) and others is fairly common.
• Greece has understandable animosity towards Turkey; the nations have long running disputes over the ownership of Cyprus and several Aegean islands, which has led to armed conflict in the past. More recently there has been a lot of anti-German feeling, after the EU financial bail-out of Greece and the strict austerity measures that were imposed as a condition of the bail-out.
• Since the break up of the former Yugoslavia, The Balkans has had its racism exposed. Pretty much every Balkan nation hates at least one of the others, and the Serbs are hated by all the others. The divides are not only racial, but also religious. The racist hate has led to horrific atrocities, for example the massacre in Srebrenica and the siege of Sarajevo.
• Even Sweden, once one of the most liberal and open nations, has a significant racist undercurrent, and some rather extreme institutionalised racism, as described on Wikipedia.

Of course, just because a nation has racism doesn't mean that it is getting worse, but my impression is that it is indeed getting worse. It is easy for a country's population to be open to immigration and equal opportunities for immigrants when that population has jobs, good housing and money, but that is no longer the case. Economic downturns due to the Covid pandemic and cyclic effects, inflation of food prices, the effort to be carbon neutral, and the impact of aging populations on pension systems and retirement ages has made people less willing to share their shrinking piece of the cake with foreigners, whether actually immigrants or simply different. The financial impacts are inevitably increasing racism. This is not so different to the situation with environmental issues: people are willing to recycle, to buy greener products etc. when they have enough money, but when times are hard they are not.