This is the 552nd most frequent Danish word.
værre
Worse.
In this sentence, 'værre' is used as the comparative form of the adjective 'værre' describing a hypothetical situation.
Det kunne være meget værre.
It could be much worse.
Here, 'værre' is used to compare the expected severity of a situation to reality.
Jeg troede, det ville være værre end det faktisk var.
I thought it would be worse than it actually was.
In this example, 'værre' describes a progression towards a more negative state in the future.