As it announced its record annual expenditure, the international Red Cross painted a picture of rising global instability - a lethal cocktail of war, natural disasters and economic volatility.

The Geneva-based humanitarian organisation's annual report shows it spent 724 million euros (just over one billion dollars) in 2008 with Sudan and Somalia ahead of Iraq and Afghanistan in the league table of aid priorities.

"Millions of people affected by armed conflict have become more vulnerable because of the combined effects of war, natural disasters and continued high food prices," the International Committee of the Red Cross (ICRC) said.

"Afghanistan, Somalia and Pakistan are three examples of countries where natural disasters and high food prices have made life even harder for poor people already struggling to cope with the effects of war," said Jakob Kellenberger, ICRC president.

Field expenditure amounted to 593 million euros, with 100 million euros accounted for at its Swiss headquarters. Africa swallowed up almost half of all operational spending, while another fifth went on the Middle East.

The report said the increase in expenditure is "due to the deteriorating humanitarian situation in many countries, such as Sri Lanka, the Democratic Republic of the Congo and Pakistan, but it also reflects improved ICRC access to people affected by wars."

Kellenberger cited Iraq, the northern African Sahel region, Somalia and Georgia.

The ICRC's breakdown showed over 121,000 tonnes of food distributed to 2.79 million people worldwide last year, more than twice as much as in 2007.