"And for the better", he stated, noting that in countless communities, including in the poorest countries that host the vast majority of the world's refugees, business people, faith communities, teachers, journalists and many more are joining together to provide refuge to the displaced and foster their inclusion in their societies.
Australia is also providing almost $1 million in food and supplies to help more than 320,000 people displaced by conflict in Marawi City in the southern Philippines.
Within this appeal, UNICEF operations require almost $50 million in 2017 as well as $30 million each year from 2018-2020 to provide critical health, nutrition, water and sanitation, education, early childhood development, adolescent development, and child protection interventions, for both refugee and host community children.
"This huge imbalance reflects several things including the continuing lack of consensus internationally when it comes to refugee hosting and the proximity of many poor countries to regions of conflict", the United Nations agency said.
They said the "disastrous breakdown of peace efforts" last summer significantly worsened the situation since the report was compiled. This is the highest number since the UNHCR started their yearly reports.
"Hardship, separation, death", Guterres said, recalling nightmare stories heard from refugees and displaced persons, whose number rose 300,000 since the end of 2015.
At the end of 2016, there were about 40.3 million internally displaced people in the world, down slightly from 40.8 million a year earlier, with Syria, Iraq and Colombia accounting for the greatest numbers. That was a smaller increase than in the four previous years.
The UN report said 84 percent of all refugees are living in developing nations.
"The world seems to have become unable to make peace", he said, adding that conflicts old and new are both resulting in forced displacement of people, "a symbol for wars that never end".More news: Google is 'replacing' Gchat today - here's what that means
Grandi also warned of the burden being placed on numerous world's poorest states, as some 84 per cent of the world's displaced people are living in poor and middle income countries, the BBC reported.
Ethiopian officials also vowed to continue the country's open door policy for people affected by war and looming starvation in South Sudan.
"These continued to cause significant humanitarian needs, especially in the countries least able to respond to them", said the UN.
"Some civilians have been directly targeted so concerns are firstly for their physical safety, especially if they are prevented by the belligerents from fleeing conflict or besieged areas".
For the third consecutive year, Turkey hosted the largest number of refugees worldwide, with 2.9 million people, followed by Pakistan (1.4 million), Lebanon (1 million), Iran (979,400), Uganda (940,800) and Ethiopia (791,600). Only 1,304 refugees have arrived.
The UN report said its findings added up to "an enormous human cost of war and persecution globally". "For a world in conflict, what is needed is determination and courage, not fear".
(AP Photo/Sam Mednick). UNCHR High Commissioner Filippo Grandi, center-left, walks with Vicky Tennant, Special Assistant to the High Commissioner, center-right, during a visit to South Sudan's largest camp for the internally-displaced, in Bentiu, South.
There are also more than 375,000 internally displaced people (IDPs) in Rakhine, Kachin and northern Shan states as well as in southeast Myanmar, according to the spokesperson.
Conditions at the camp are dire but the 120,000 people living in "rows of tented squalor" were too scared to leave.